Community Development Bankers Association’s Post

𝐅𝐃𝐈𝐂 𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐬 𝐒𝐭𝐫𝐢𝐜𝐭𝐞𝐫 𝐒𝐜𝐫𝐮𝐭𝐢𝐧𝐲 𝐟𝐨𝐫 𝐋𝐚𝐫𝐠𝐞 𝐁𝐚𝐧𝐤 𝐌𝐞𝐫𝐠𝐞𝐫𝐬 The FDIC aims to intensify oversight of bank mergers exceeding $100 billion in assets, reflecting concerns over financial stability. This initiative, marking the first update in 16 years, emerges after the 2023 bank failures spotlighted risks associated with large banks. The proposal, met with Republican resistance and banking industry criticism for potentially stifling competition, underscores a shift towards greater regulatory caution. It's part of broader efforts to address financial system complexities and international operations, aligning with Dodd-Frank Act principles. #finance #news #FDIC #BankMergers #RegulatoryScrutiny Source: https://lnkd.in/gWhVj93h

𝐅𝐃𝐈𝐂 𝐭𝐨 𝐏𝐫𝐨𝐩𝐨𝐬𝐞 𝐍𝐞𝐰 𝐁𝐚𝐧𝐤 𝐌𝐞𝐫𝐠𝐞𝐫 𝐏𝐨𝐥𝐢𝐜𝐢𝐞𝐬 𝐀𝐦𝐢𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐈𝐧𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 The Federal Deposit Insurance Corporation (FDIC) plans to introduce new bank merger policies on Thursday, addressing instability among midsize banks. Following the largest U.S. bank failures last year, the proposal seeks to enhance transparency and scrutiny in merger reviews. The move comes amid criticisms of previous mergers and is seen as a response to increasing financial reform calls. #finance #news #FDICMergerPolicy #BankingRegulation #FinancialStability Source: https://lnkd.in/gMzrxu7S

Major Shift in Bank Merger Regulation in the US: What You Need to Know! 💼🏦 The bank merger landscape is about to change! The U.S. Federal Deposit Insurance Corporation (FDIC) has proposed increased scrutiny for mergers that result in banks with more than $100 billion in assets. 🎯 Key takeaways from the proposal: 🚨 The FDIC aims to improve financial stability by revising its merger guidelines, the first update in 16 years. 📈 The move follows recent scrutiny due to significant U.S. bank failures, which have impacted the FDIC's insurance fund and raised concerns about financial stability. 🔎 The proposal emphasizes risk assessment to ensure the resilience of the banking sector. 📊 Industry Impact: 💥 Critics argue that the new rules could stifle competition and protect large Wall Street banks. 🗣️ The Bank Policy Institute raises concerns about the subjective nature of the proposal and fears increased uncertainty in merger reviews. 📝 Looking Forward: 🌐 Guidance focuses on a bank's complexity and cross-border activities, reflecting the Dodd-Frank Wall Street Reform statutes. 🗓️ The proposal, which is now open for a 60-day public comment period, invites feedback from all stakeholders. 🤔 How do you think these changes will impact the banking M&A landscape? 🔍 ************************************* Digitalize your M&A process now: https://buff.ly/3MABeE0 #mergersandacquisitions #duediligence #carveout #digitalsmart

New FedFin in-depth report analyzes the FDIC’s controversial merger-policy proposal. An extra-irony in the proposal given that the policy is partly predicated on the agency’s acknowledged inability to resolve troubled banks (see: https://bit.ly/3xmBLFt):  The policy would bar mergers that might avert failures, allowing these only and even then only maybe if the FDIC takes over the bank. In short: the agency won’t let banks buy banks to save banks even though the FDIC can’t resolve any but the smallest banks. #FDIC, #mergerpolicy, #merger, #bank

#GTinPress | In a recent article in The Economic Times, Vivek Ramji Iyer, Partner, Financial Services - Risk, #GTBharat, clarifies a key ambiguity regarding DICGC coverage, emphasising that the Rs 5 lakh limit applies per bank per customer, not cumulatively across merged entities. He exemplifies this by demonstrating how a customer's coverage remains at Rs 5 lakh even after a bank merger. This insight is crucial for ensuring accurate understanding, and informed decisions amongst depositors. Read the full article here: https://brnw.ch/21wG8Xl #Banks #Deposits #Finance #BanksMerger #DICGC

Klaros Group partner and co-founder Brian Graham quoted in the American Banker on the FDIC's statement of policy on bank merger transactions. Brian Graham, a partner with the Klaros Group, said the SOP — which is expected to heighten Biden-era regulators' emphasis on financial stability and competitiveness of markets when vetting deals — is likely to increase frustration among larger institutions aiming to merge. "[It highlights] how brutally challenging it is to be a bank with assets between $50B and $250B, which face the same regulatory costs of JPMorgan but are [fifteen times] smaller — and regulators seem unlikely to permit them to merge to gain scale," Graham said. "When combined with the acting comptroller's speech on M&A a couple of weeks ago, this FDIC action underscores a more open outlook to bank M&A involving banks with less than $50B in assets — which desperately need to get bigger to be able to shoulder the added regulatory costs and burdens even smaller banks are facing." https://lnkd.in/gJm5HeJV

“Banks need to achieve significant scale to absorb more regulatory costs and to be competitive,” said Christopher McGratty, CFA, head of U.S. bank research at KBW, on developments that could trigger a new round of dealmaking in the industry. “All of our work suggests more M&A is going to happen.” Read our roundup for more on the regulatory changes impacting bank M&As, as well as other stories on issues that are shaping the M&A landscape in 2024. #regulations #banking https://bit.ly/3PmHxxg

On Monday, a senior U.S. banking regulator put forth new guidelines for bank mergers and acquisitions (M&A) in an effort to boost process openness and make sure certain transactions aren't approved without adequate review. The Office of the Comptroller of the Currency (OCC) made the decision in response to criticism from the banking sector regarding the regulators' perceived excessive transparency in handling bank transactions, and analysts predict further consolidation among small lenders facing declining profit margins. Follow for more such content. Stay informed on the latest business news by visiting our website. #globalbusinessandfinancemagazine #businessnews #news #internationalnews #business #globalbusiness #globenews #newsupdates #todaysupdates #latestnews #globalupdates

This move hopes to address industry concerns about the lack of clarity in regulatory processes and is anticipated to impact smaller lenders navigating challenging margins. Michael Hsu, the acting comptroller, emphasised the proposal's dual purpose of expediting favourable deals and ensuring regulatory obstacles are identified early on. The OCC's initiative also seeks to formalise unwritten aspects of the merger review process, providing clear guidelines for deals involving banks with supervisory issues versus those with high supervisory ratings. #BankingRegulation #Transparency #FinancialNews