FDIC Proposes New Framework to Speed Bank Merger Reviews
The proposal would create new rapid and expedited processing pathways and codify safe harbors for competition and financial stability to reduce uncertainty for many transactions.
The Federal Deposit Insurance Corporation (FDIC) has issued a notice of proposed rulemaking to overhaul its framework for reviewing transactions under the Bank Merger Act. The proposal aims to increase the speed and predictability of the approval process by introducing tiered processing pathways—including rapid and expedited options for smaller or less complex deals—and by establishing new safe harbors for competition and financial stability. Key changes also include a revised methodology for analyzing competitive effects, which would treat bank, thrift, and credit union deposits equally for market share calculations. For sophisticated counsel and their banking clients, this proposal signals a significant and favorable shift from a more restrictive policy stance adopted in 2024. If finalized, the framework could materially reduce the time, cost, and uncertainty associated with obtaining FDIC approval, potentially encouraging more M&A activity. Interested parties should analyze the proposal's impact and consider submitting comments by the November 23, 2026 deadline, while also monitoring whether other federal banking regulators and the Department of Justice align their own policies.