Fed’s Bowman: Bankers and regulators aren’t on the same page about M&A

When it comes to process reform for mergers and acquisitions, it can feel like bankers and regulators are living in different worlds, according to Federal Reserve Governor Michelle Bowman.

Details: Speaking in Colorado Springs, Bowman said bankers seek to conclude the M&A process quickly so they can begin to integrate the banks but there is “a lack of timely regulatory action.”

More: Bowman said the absence of a viable M&A framework increases the potential for additional risks, including limited opportunities for succession planning, especially in smaller or rural communities. Regulators should ensure reforms promote a healthy banking system and acknowledge the role of M&A activity.

ICBA View: In a June comment letter on the FDIC's proposed statement of policy on bank merger transactions, ICBA said the current merger review process is flawed, outdated, and fragmented. In a previous comment letter on the OCC’s proposal to amend Bank Merger Act rules, ICBA called for unified, interagency bank merger guidelines, an interagency statement of policy, and the preservation of expedited reviews and streamlined applications.