House GOP Presses Fed To Speed Bank Merger Reviews, Clear Backlog
By CU Today Staff —
WASHINGTON— House Financial Services Committee Republicans are urging the Federal Reserve to take additional steps to speed reviews of bank merger and acquisition applications, including clearing a backlog of long-pending deals and expanding the number of transactions that can be approved without a vote of the Fed's Board of Governors.
The request came in a letter Wednesday from Committee Chairman French Hill (R-AR) and Financial Institutions Subcommittee Chairman Andy Barr (R-KY), joined by all Republican members of the subcommittee, to Federal Reserve Vice Chair for Supervision Michelle Bowman, according to the House Financial Services Committee and Law360.
The lawmakers said timely reviews of bank mergers strengthen the banking system, expand access to financial services and provide greater certainty for banks, employees and customers. They encouraged the Fed to fully implement recommendations from its Office of Inspector General, review long-pending merger applications and make broader use of delegated authority so more transactions can be approved without requiring a board vote, according to the committee's letter.
The Republicans noted that Bowman has already taken steps to improve the merger review process, including issuing guidance intended to streamline approvals, but argued additional reforms are warranted. They said applications that satisfy regulatory requirements should move through the process more quickly, while reserving full board consideration for more complex or controversial transactions, according to the House Financial Services Committee.
The letter comes as bank merger review timelines have drawn increased scrutiny from lawmakers and the industry following years of complaints that applications have lingered for months or longer. The Federal Reserve currently acts on some applications under delegated authority while others require action by the Board of Governors, according to Federal Reserve procedures.
Originally reported by CU Today.