Bank Competition Modernization Act
Summary
What This Bill Does
This bill loosens federal competitive-factor review for smaller bank mergers and acquisitions. Under the Federal Deposit Insurance Act, Bank Holding Company Act, and Home Owners' Loan Act, transactions that would result in an institution or company with less than $10 billion in assets would not be reviewed for monopoly, attempted monopoly, substantial lessening of competition, or restraint of trade factors. The reported version also requires the FDIC and Federal Reserve Board to adjust the $10 billion threshold when nominal GDP increases.
Earlier text also required the Attorney General and Federal Reserve to consider competition from depository institutions, holding companies, industrial loan companies, Farm Credit institutions, nonbank financial companies, and credit unions. The reported text is more direct: below the threshold, agencies must not consider the listed competition factors. That makes qualifying community-bank combinations easier to approve.
Who Benefits and How
Community banks below $10 billion benefit because qualifying mergers face less antitrust-style review. Small bank holding companies benefit from a clearer path to combine or acquire institutions. Savings and loan holding companies benefit from a similar threshold rule under the Home Owners' Loan Act. Community bank investors benefit if more deals can close. Rural banks seeking scale benefit if merger review no longer treats the transaction as a competition problem under the threshold.
Who Bears the Burden and How
FDIC merger-review staff lose discretion to consider competition effects for qualifying transactions. Federal Reserve Board merger staff face the same limitation for bank holding company and savings-and-loan transactions. DOJ Antitrust Division staff have less influence over smaller bank deals. Bank customers in concentrated local markets may bear risk if local branch or loan competition falls after a merger. Community groups that challenge consolidation lose an argument for deals below the threshold.
Key Provisions
- Amends Federal Deposit Insurance Act competitive-factor review for mergers resulting in institutions below $10 billion.
- Bars responsible agencies from considering monopoly or substantial-lessening-of-competition factors for qualifying smaller transactions.
- Amends Bank Holding Company Act review for acquisitions, mergers, and consolidations below the threshold.
- Amends Home Owners' Loan Act review for qualifying savings-and-loan holding company transactions.
- Requires FDIC and Federal Reserve Board threshold adjustments when nominal GDP increases.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Changes bank-merger competitive review by directing banking agencies not to consider monopoly or substantial-lessening-of-competition factors for transactions resulting in institutions below $10 billion in assets, while adjusting that threshold with nominal GDP increases.
Key Policy Areas
Banking, Finance, Antitrust, Small Business
Primary Purpose
Changes bank-merger competitive review by directing banking agencies not to consider monopoly or substantial-lessening-of-competition factors for transactions resulting in institutions below $10 billion in assets, while adjusting that threshold with nominal GDP increases.
Policy Domains
House resolution provisions
Identified Gains
- Community banks below $10 billion
- Small bank holding companies
- Savings and loan holding companies
- Community bank investors
- Rural banks seeking scale
Identified Costs
- FDIC merger-review staff
- Federal Reserve Board merger staff
- DOJ Antitrust Division staff
- Bank customers in concentrated local markets
- Community groups challenging bank consolidation
Legislative Progress
ReportedReported with an amendment, committed to the Committee of the …
Placed on the Union Calendar, Calendar No. 317.
Reported (Amended) by the Committee on Financial Services. H. Rept. …
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: …
Introduced in House
Referred to the House Committee on Financial Services.
Mr. Fitzgerald introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Bank customers in concentrated local markets, Community banks below $10 billion, Community groups challenging bank consolidation
Positive-direction: Community banks below $10 billion, Savings and loan holding companies, Small bank holding companies
Negative-direction: Bank customers in concentrated local markets, Community groups challenging bank consolidation
DOJ Antitrust Division staff, FDIC merger-review staff, Federal Reserve Board merger staff
Positive-direction: FDIC merger-review staff, Federal Reserve Board merger staff
Negative-direction: DOJ Antitrust Division staff
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "doj"
- → Department of Justice
- "fed"
- → Federal Reserve Board
- "fdic"
- → Federal Deposit Insurance Corporation
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology