OCC Seeks Public Input on Proposed Updates to Bank Merger Rules

The Office of the Comptroller of the Currency (OCC) has invited public comments on its recently proposed rulemaking and policy statement, which aims to modernize the rules governing business combinations involving national banks and federal savings associations. The proposal is designed to augment transparency in the OCC's review process under the Bank Merger Act (BMA) and offer additional clarity to stakeholders.

The proposed rulemaking represents a crucial step in the OCC's commitment to refining its procedures and ensuring a more transparent and accountable approach to reviewing transactions under the BMA. It also seeks to provide enhanced guidance to stakeholders involved in the merger application process.

Key Aspects of the Proposal:

1. Transparency Enhancement:The OCC's effort to update rules aligns with its goal of boosting transparency in the review process. By modernizing the regulations governing business combinations, the OCC aims to foster a clearer understanding of the criteria used in evaluating applications.
2. Policy Statement on BMA Applications:The proposed policy statement is a central component of the initiative. It outlines general principles governing the OCC's review of applications under the BMA. This includes indicators for applications likely to receive approval and those that may raise supervisory or regulatory concerns.
3. Consideration of Key Factors:The policy statement sheds light on the OCC's approach to considering crucial factors during the review process. This encompasses an examination of financial stability, managerial and financial resources, future prospects, and compliance with statutory factors related to convenience and needs.
4. Decision Process Transparency:The proposal addresses the OCC's decision-making process concerning the extension of public comment periods or the arrangement of public meetings. This further reinforces the OCC's commitment to openness and inclusivity in its regulatory processes.

‍Acting Comptroller Michael J. Hsu emphasized the significance of the proposed rulemaking, highlighting that it follows a comprehensive review of bank merger policies and regulations, including a public Symposium on Bank Mergers in February 2023. Hsu expressed the OCC's ongoing collaboration with interagency peers to update analytical frameworks, aiming to enhance bank merger outcomes that benefit communities, foster competition, and support a diverse banking system.

The OCC encourages interested parties to submit their comments on the proposed rulemaking. This inclusive approach reflects the OCC's commitment to engaging with stakeholders and considering diverse perspectives in shaping regulations that align with evolving financial landscapes. The public comment period provides an opportunity for constructive input, ensuring that the final rules effectively serve the interests of all stakeholders in the banking sector.

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