HR6546-119

What This Bill Does

The Merger Process Review Act creates recurring Inspector General review of insured depository institution merger applications. Within one year after enactment and every three years thereafter, the Inspector General of each federal depository institution regulatory agency must review the agency's merger review procedures, including timeliness and efficiency in reviewing and acting on merger applications. Covered agencies are the Federal Reserve Board, OCC, FDIC, and National Credit Union Administration Board.

The review must evaluate quantifiable metrics such as mean and median processing times, identify delay sources that hinder timely consummation of proposals meeting statutory factors, consider the benefits and risks of different lawful merger review approaches, evaluate effects of merger procedures and approved mergers on safety and soundness, financial stability, competition, and availability of financial products and services, and recommend improvements. Each Inspector General must report findings to Congress and publish the report online. The appropriate regulatory agency must submit and publish a written response with a plan to implement recommendations where appropriate. Covered merger applications include acquisitions of insured depository institutions, equity interests, assets, or deposits under Home Owners' Loan Act, Federal Credit Union Act, Federal Deposit Insurance Act, and Bank Holding Company Act provisions.

Who Benefits and How

Bank merger applicants benefit from recurring oversight of processing times and delay sources. Credit union merger applicants benefit because insured credit union merger requests are covered. Congressional banking committees benefit from Inspector General findings and online reports. Community banks considering acquisitions benefit if recommendations make reviews more timely and predictable. Consumers of financial products benefit if reviews explicitly examine competition and product availability. Public watchdogs benefit from published reports and agency responses.

Who Bears the Burden and How

Federal Reserve Inspector General staff must review merger procedures, metrics, delay sources, risks, and recommendations. OCC Inspector General staff must perform the same recurring review. FDIC Inspector General staff must review deposit-insurance and bank-merger application handling. NCUA Inspector General staff must cover insured credit union merger applications. Federal depository institution regulatory agencies must prepare written responses and implementation plans. Agency merger-review offices may need to change procedures in response to Inspector General recommendations.

Key Provisions

• Requires Inspector General reviews within one year and every three years afterward.
• Covers the Federal Reserve, OCC, FDIC, and NCUA Board.
• Requires evaluation of mean and median processing times and other quantifiable metrics.
• Requires identification of delay sources in merger application processing.
• Requires evaluation of merger-review approaches and effects on safety and soundness, financial stability, competition, and product availability.
• Requires specific recommendations to improve timeliness and efficiency.
• Requires reports to Congress and online publication.
• Requires agency written responses and implementation plans.