Members of the U.S. House Committee on Financial Services are urging Federal Reserve officials to continue improving the timeliness and efficiency of their review of bank mergers and acquisitions (M&A).
In a July 21 letter to the Fed’s Vice Chair for Supervision Michelle Bowman, the committee members said the timely review of banking M&A applications promotes a stronger banking system, expands access to financial services, and provides greater certainty for banks.
“In any vibrant banking sector, some consolidation is expected as well-managed, financially strong firms seek to enter new markets and achieve economies of scale. Consumers benefit through access to additional banking products and through wider availability of services. Acquiring banks often bring stronger management to acquired banking organizations, and this management can work to provide more capital to households and businesses in the target bank’s geographic footprint,” the committee members wrote to Bowman in the letter led by Committee Chairman French Hill (R-AR) and Subcommittee on Financial Institutions Chairman Andy Barr (R-KY).
The lawmakers also encouraged the Federal Reserve to:
- Swiftly implement the initiatives agreed to in response to the Office of Inspector General’s March 2026 review, allowing for better insight into current performance and areas for improvement;
- Review long-pending applications focused on identifying and removing obstacles to final action; and
- Identify additional classes of applications currently requiring direct action of the Board that would be appropriate for action under Federal Reserve Bank delegated authority.