WASHINGTON, D.C.— Shayna Olesiuk, Director of Banking Policy, issued the following statement in response to the Office of the Comptroller of the Currency (OCC) final rule on Business Combinations Under the Bank Merger Act and the Federal Deposit Insurance Corporation (FDIC) final statement of policy on Bank Merger Transactions.

“An insufficient merger review process has contributed to massive consolidation in the banking industry over the past several decades, creating multiple too-big-to-fail (TBTF) banks. Since the mid-1980s, the number of banks in the US has declined by roughly 70 percent, primarily because Wall Street megabanks continue acquiring smaller banks. Not only does this decline threaten the viability of community banks which are often the lifeblood of Main Street America, it harms consumers, small businesses, and communities across America with less access, fewer choices, and higher costs for banking services.

“We applaud the OCC’s decision to remove automatic and expedited approval of certain bank mergers. As we explained in our comment letter, this will allow for appropriate scrutiny of all merger applications.  We are also encouraged by the OCC and FDIC’s commitment to hold public hearings on proposed bank mergers.

“However, the OCC’s final rule and the FDIC’s statement of policy still lack specificity in the guidelines that govern decisions on merger applications. Unfortunately, the agencies moved in the wrong direction by codifying broad and vague guidelines rather than defining more specific guidelines to govern the approval of bank merger applications and ultimately protect Main Street Americans and businesses.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.