The national bank regulator is restoring its pre-2024 business combinations rule under the Bank Merger Act (BMA), undoing the rule adopted last September and also rescinding its related policy statement.
The changes by the Office of the Comptroller of the Currency (OCC) put back in place the previous rule’s streamlined application and expedited review, the agency said Thursday.
The Federal Deposit Insurance Corp. (FDIC) took similar action in April.
The OCC, in a interim final rule awaiting Federal Register publication, said its September policy statement “generated confusion and generally did not succeed in providing additional clarity to banks or the public” and possibly discouraged banks from entering into “economically beneficial” mergers.
The OCC said it will consider any future changes to its procedures in response to comments on the interim final rule “and developments in the banking industry.” It noted that the BMA’s statutory factors have existed in their current form since 2011, with the majority of those factors in their current form since 1966. “To the extent that more specific guidance on the statutory factors is needed, the OCC will consider any comments it receives in response to this interim final rule,” it said.
The agency also requested comments regarding the rescinded policy statement, specifically, what content would be helpful in any future policy statement discussing the OCC’s review of applications under the BMA. “The OCC is committed to providing transparent and useful information to the banking industry and the public to facilitate beneficial mergers that increase and support economic activity and innovation in the economy,” it said.
The interim final rule will take effect upon publication in the Register, and any comments will be due within 30 days after that.
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