OCC approves separate rule, guidance on bank mergers

The OCC approved a final rule updating its regulations for business combinations involving national banks and federal savings associations and a policy statement clarifying its review of applications under the Bank Merger Act.

Final Rule: Effective Jan. 1, 2025, the OCC’s final rule includes regulatory amendments that will:

• Remove expedited review procedures that allow certain filings to be deemed approved as of the 15th day after the close of the comment period.

• Remove a section that specifies situations in which an applicant may use the OCC’s streamlined business combination application rather than the full interagency BMA application.

Policy Statement: Designed to provide guidance to stakeholders on the OCC’s review of applications, the agency’s finalized policy statement discusses:

• General principles for the OCC’s review of applications under the BMA, such as indicators that applicants are more likely to be approved expeditiously.

• The OCC’s consideration of the BMA’s statutory factors on financial stability, managerial and financial resources and future prospects, and convenience and needs.

• The OCC’s decision process for extending the public comment period or holding a public meeting.

ICBA View: In a comment letter earlier this year, ICBA said it opposes eliminating expedited reviews and streamlined applications. ICBA also called on the OCC to work with the FDIC, Federal Reserve, and Justice Department to create unified, interagency bank merger guidelines.