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Federal Deposit Insurance Corporation Modernizes Framework for Reviewing Bank Merger Transactions

On September 17, 2026, the Federal Deposit Insurance Corporation (FDIC) Board of Directors approved a notice of proposed rulemaking to modernize and reform its process for reviewing merger transactions under the Bank Merger Act (BMA). The proposed rule introduces several significant reforms designed to streamline the merger review process and reduce regulatory burden on financial institutions. Key changes include accounting for credit unions and centrally booked deposits in competitive effects analysis; establishing a letter filing process with "deemed approval" for de minimis merger transactions; tailoring merger filing requirements to reduce burden and processing times; and limiting and clarifying the FDIC's discretion to remove a filing from expedited processing. The FDIC will also reform its approach to evaluating the statutory factors under the BMA. Collectively, these reforms impose discipline around timelines and modernise the framework to reflect the current banking environment. The proposed rule aims to make the FDIC's review of merger transactions faster, more predictable, and appropriately tailored to reflect the type, size, and complexity of potential risks associated with merger transactions subject to FDIC approval. The comment period for the proposed rule closes 60 days after publication in the Federal Register. Interested parties, including banks, credit unions, and other stakeholders, should submit comments during this period. The FDIC will review all submissions before finalising the rule. Further details on the proposed rulemaking are available through the FDIC's official channels.

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Federal Deposit Insurance Corporation Proposes Comprehensive Reforms to Bank Merger Act Review Framework

On September 17, 2026, the Federal Deposit Insurance Corporation (FDIC) Board of Directors approved a notice of proposed rulemaking that would fundamentally reform the FDIC's approach to processing and evaluating merger transactions under the Bank Merger Act (BMA). The proposed rule addresses procedural aspects of merger review and codifies the FDIC's standards for evaluating statutory factors, with the goal of improving speed, certainty, and predictability while reducing regulatory burden. Key reforms include establishing rapid processing with deemed approval for de minimis merger transactions (transactions below specified asset thresholds or involving routine corporate reorganizations); expanding expedited processing for corporate reorganizations and eligible depository institutions; establishing tailored standard processing timelines of 90 days and 150 days for different transaction categories; and clarifying the FDIC's discretion to remove filings from expedited processing. The proposed rule would reduce public notice requirements from three publications to two for most merger transactions and from three to one for corporate reorganizations. The rule also establishes a new notice and non-objection framework for significant asset transfers (transactions increasing an institution's assets by 25 percent or more over a rolling 12-month period). The proposed rule modernizes the competitive effects analysis by incorporating credit union shares and centrally booked deposits into the initial Herfindahl-Hirschman Index (HHI) screen and establishes safe harbors for transactions meeting specified HHI thresholds. It codifies the FDIC's approach to evaluating the financial and managerial resources, convenience and needs of the community, financial stability, and anti-money laundering statutory factors. The rule also indexes dollar-based thresholds to inflation, with adjustments effective October 1, 2027, for existing thresholds and October 1, 2029, for new thresholds. The comment period closes November 23, 2026. Comments should be submitted to the FDIC at https://www.fdic.gov/resources/regulations/federal-register-publications or by mail to Jennifer M. Jones, Deputy Executive Secretary, Attention: Comments/Legal OES (RIN 3064–AG18), Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429.

4 tool calls

fetch https://www.fdic.gov/news/press-releases/2026/fdic-board-directors-approves-proposed-rule-modernize-and-reform-fdics http · 2233 chars · 40 links
fetch https://www.fdic.gov/board/notice-proposed-rulemaking-merger-transactions.pdf refused (not a fetched link)
search "FDIC bank merger transactions proposed rule" → nids 92756, 94198, 94351, 94089, 94352
search "FDIC Bank Merger Act competitive effects HHI proposed rulemaking" → nids 92756, 91769, 91755, 95249, 91900

Published

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US Federal Deposit Insurance Corporation Issues Notice of Proposed Rulemaking to Modernize and Reform Framework for Reviewing Bank Merger Transactions

On September 17, 2026, the Federal Deposit Insurance Corporation (FDIC) Board of Directors approved a notice of proposed rulemaking to modernize and reform its process for reviewing merger transactions under the Bank Merger Act (BMA). The proposed rule introduces several significant reforms designed to streamline the merger review process and reduce regulatory burden on financial institutions. Key changes include: Accounting for credit unions and centrally booked deposits in competitive effects analysis. Establishing a letter filing process with "deemed approval" for de minimis merger transactions. Tailoring merger filing requirements to reduce burden and processing times. Limiting and clarifying the FDIC's discretion to remove a filing from expedited processing. The FDIC will also reform its approach to evaluating the statutory factors under the BMA. Collectively, these reforms impose discipline around timelines and modernize the framework to reflect the current banking environment. The proposed rule aims to make the FDIC's review of merger transactions faster, more predictable, and appropriately tailored to reflect the type, size, and complexity of potential risks associated with merger transactions subject to FDIC approval. The comment period for the proposed rule closes 60 days after publication in the Federal Register. Interested parties, including banks, credit unions, and other stakeholders, should submit comments during this period to comments@fdic.gov. The FDIC will review all submissions before finalizing the rule.