The Federal Deposit Insurance Corporation is rolling back a 2024 policy that made it harder for banks to merge. This means bank mergers will now be reviewed under the older, less restrictive rules.
Why it matters
The FDIC had tightened its review of bank mergers earlier this year, signaling a tougher stance on consolidation in the banking sector. By reinstating the old policy, the agency is effectively pausing that stricter approach. This makes it easier for banks to grow through acquisition, which could lead to fewer, larger banks over time.
The signal
Watch for an increase in bank merger applications and approvals in the coming months, especially among regional banks.