Published: June 2024

Organizations comment on proposals to reform the bank merger process

Consumer Action added its name to comments to the OCC and FDIC regarding regulatory proposals to reform the bank merger process, which the organizations contend are strongly biased in favor of merger approval, with little consideration for how communities are impacted.

Consumer Action and fellow advocates submitted comments to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) regarding regulatory proposals to reform the bank merger process. The merger process can be a significant opportunity to improve economic justice for BIPOC and low-income communities. However, the signers contend that the current merger process is strongly biased in favor of merger approval, with little consideration given to community impacts. The groups urged the agencies to reform the bank merger process to, among other things: end expedited reviews of bank merger applications; require that bank applicants demonstrate that communities will be better off after the merger; place greater consideration on the potential impacts of “smaller” bank failure and climate-related financial risks; and provide meaningful opportunity for impacted communities to provide input and to inform the ultimate decision by regulators.

Lead Organization

Rise Economy

More Information

Read the letter here.

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