The Federal Deposit Insurance Corporation Board approved a proposed rule to overhaul its Bank Merger Act review framework, with faster processing, clearer deadlines and requirements tailored to a transaction’s size, structure and risk. The proposal follows the comprehensive review begun in 2025 and would codify the agency’s evaluation standards in regulation, with the current policy statement expected to be rescinded when a final rule is issued. Qualifying de minimis transactions would use a streamlined letter filing and receive deemed approval within five business days after the relevant filing or competition review requirements are satisfied. Corporate reorganizations could receive decisions within 30 days, while other qualifying expedited transactions would have a 45 day timeline. Standard reviews would generally be completed within 90 days for resulting institutions below USD 50 billion and within 150 days for other transactions, subject to specified extensions. Filings would be deemed substantially complete if the FDIC did not identify missing information within 21 days. The competitive effects analysis would include credit union shares and centrally booked deposits, with a safe harbor where the post transaction Herfindahl-Hirschman Index is no more than 1,800 or the increase is less than 200 points, absent an objection from the attorney general. The proposal also defines mergers in substance using an 80% asset threshold over 12 months, creates a notice and non-objection process for significant asset transfers that increase an FDIC-supervised institution’s assets by at least 25% over 12 months, and codifies tailored assessments of statutory factors, including remediation plans, financial stability and the resulting institution’s overall profile.

Original source