The U.S. House Financial Services Committee’s Financial Institutions Subcommittee convened a hearing to examine ways to improve transparency and efficiency in the bank merger review process and promote a more competitive and accessible banking landscape. In prepared opening remarks, Subcommittee Chair Andy Barr said the current merger review framework is slow, uncertain, and costly, and highlighted the Bank Failure Prevention Act, which would require federal banking agencies to complete merger reviews within a specified time frame. He also cited a Congressional Review Act resolution he introduced to overturn a prior-administration merger rule that has been rescinded by Acting Comptroller Rodney Hood, noting the resolution has passed the Senate. Barr further pointed to weak de novo bank formation, citing 60 new bank charters over the past 10 years, and referenced the Promoting New Bank Formation Act, which passed the committee and would phase in capital requirements and lower the community bank leverage ratio for new banks in their early years. Barr urged House leadership to bring the Congressional Review Act resolution to the House floor for a vote.
U.S. Financial Services Committee 2025-05-14
U.S. House Financial Services Committee holds subcommittee hearing on speeding up bank merger reviews and supporting new bank formation
The U.S. House Financial Services Committee's Financial Institutions Subcommittee held a hearing on improving transparency and efficiency in the bank merger review process. Subcommittee Chair Andy Barr criticized the current framework as slow and costly, advocating for the Bank Failure Prevention Act to expedite reviews and the Promoting New Bank Formation Act to support new banks. Barr also urged a House vote on a resolution to overturn a rescinded merger rule.