Better Markets has filed a Comment Letter to the Antitrust Division of the Department of Justice on their request for comment on enhancing the 1995 Bank Merger Competitive Review Guidelines.

Why It Matters. Large mergers not only increase financial stability risks, but they can also harm hardworking Americans and small businesses. They can lead to a reduction in consumer banking services or increase the cost associated with them, or even to a lack of access altogether when branches are closed, especially in low-income communities.

What We Said. The assessment process should include provisions that work to enhance the servicing of the convenience and needs of underserved communities. Additionally, the DOJ and banking regulatory agencies have a duty to assess the financial stability risks resulting from the mergers they review and decide on. Systemic and financial stability risks deserve special scrutiny, especially considering the weakened regulatory framework implemented over the last four years.

Bottom Line. After nearly forty years of ever-increasing consolidation in the banking industry, the agencies need to strengthen the merger review process in order to enhance the public interest while reducing, or at least not increasing, the level of risk in the system.

Read our full Comment Letter here or click the button below. Read the Press Release here.