FDIC Proposes Fast Track for Bank Merger Reviews

On September 17th, the Federal Deposit Insurance Corporation (FDIC) board of directors voted unanimously to approve a proposed rule aimed at streamlining the agency's review process for bank mergers. The rule would expedite the process, enhance predictability, and ensure that the review is tailored to the specific risks associated with each transaction. The FDIC released a press statement on the same day outlining the key aspects of the proposed rule.

Key elements of the proposed rule include:

- Establishing timelines for merger reviews to ensure a more predictable process

- Modernizing the framework for evaluating merger transactions

- Accounting for credit unions and centrally booked deposits in the competitive effects analysis

- Implementing a letter filing process with "deemed approval" for "de minimis merger transactions"

- Tailoring other merger filing requirements to reduce burden and processing times

- Limiting and clarifying the FDIC's discretion to remove a filing from expedited processing

- Reforming the agency's approach to evaluating statutory factors under the Bank Merger Act

FDIC Chairman Travis Hill emphasized that the proposal was driven by concerns over the FDIC's merger review process often taking too long. Since Hill became chairman, the FDIC has reduced the time from application receipt to final action from 107 days in 2023 and 2024 to 80 days in 2025, and 64 days so far in 2026. The new rule would further codify timelines for processing different types of merger applications, including a "rapid processing" framework for de minimis transactions, which could be completed in as little as five days.

The proposal will be open for public comment for 60 days after its publication in the Federal Register.