The Federal Deposit Insurance Corporation's Board of Directors approved a final rule on 20 May 2025 rescinding its 2024 Statement of Policy on Bank Merger Transactions, reinstating the prior framework (originally adopted in 1998 and last revised in 2008) that had governed the agency's review of merger applications before the 2024 policy was adopted.
The 2024 statement, adopted under prior FDIC leadership, had introduced more rigorous standards for assessing the competitive, community, and financial stability implications of proposed bank mergers.
PRIOR FRAMEWORK REINSTATED
In addition to reinstating the prior policy, the FDIC announced plans for a broader reevaluation of the bank merger review process.
The FDIC's 20 May decision does not eliminate oversight of bank mergers — the agency's statutory obligations under the Bank Merger Act and the Federal Deposit Insurance Act remain in place, and applicants will still be required to satisfy the full range of statutory approval criteria.