U.S. Sen. John Kennedy (R-LA) and U.S. Rep. Andy Barr (R-KY) introduced a joint resolution of disapproval to nullify a final rule issued by the Office of the Comptroller of the Currency (OCC) related to the review of bank merger applications.
The OCC’s rule, finalized last September, imposes new criteria that the lawmakers say would restrict banks of all sizes from pursuing mergers and strategic partnerships. The resolution would nullify the final rule and prohibit the OCC from issuing merger regulations in the future without congressional authorization.
“Mergers increase competition and make our banking system more dynamic. By allowing banks to realize economies of scale and pass cost savings on to consumers, these acquisitions result in better rates, lower fees, and expanded access to credit—especially in underserved communities,” Barr said. “The Biden administration’s OCC injected politics into the merger process, discouraging responsible growth. This rule will lead to consolidation in the banking system, threatening the diversity that makes the US banking system the envy of the world. My resolution ensures that regulatory overreach does not threaten healthy mergers and acquisitions that strengthen our financial system.”
Barr added that responsible bank mergers are vital for financial innovation, improved efficiency, and consumer benefit. Blocking these transactions could unintentionally accelerate consolidation by limiting smaller institutions’ ability to compete.
“Big government shouldn’t stand in the way of healthy bank mergers that occur in the free market and serve consumers and job creators. In order to stabilize the banking industry and protect the Americans who depend on strong banks, Congress should quickly reverse the Biden administration’s bureaucratic rule,” Kennedy said.