The federal bank deposit insurer will take comments from the public until May 31 on its request for information (RFI) regarding the agency’s regulatory framework on bank merger transactions, according to a notice Thursday in the Federal Register.
The Federal Deposit Insurance Corp. (FDIC) issued the RFI just earlier this month after a similar effort in December was blocked by then-Chairman Jelena McWilliams.
In a March 25 Financial Institution Letter (FIL), the FDIC said it is seeking input regarding the application of the laws, practices, rules, regulations, guidance, and statements of policy that apply to merger transactions involving one or more insured depository institution, including the merger between an insured depository institution and a noninsured institution.
As the agency noted in its letter, “significant changes” over the past several decades in the banking industry and financial system necessitate a review of the regulatory framework. “The FDIC is interested in receiving comments regarding the effectiveness of the existing framework in meeting the requirements of section 18(c) of the Federal Deposit Insurance Act (known as the Bank Merger Act),” it said.