FDIC Eases Mergers While Fed Keeps Separate Framework

The FDIC has rolled back its tougher bank merger policies and is now pushing for faster reviews. However, the Federal Reserve continues to maintain a separate approval framework.

This change follows the FDIC's decision to reverse a tougher merger framework introduced in 2024. The previous policy made applications longer, harder, and less predictable, according to the agency. The FDIC has restored its earlier framework, which emphasizes quicker decisions and greater predictability for applicants.

The Federal Reserve also improved processing times, but it still reviews mergers involving bank holding companies and state-member banks under its own process. In 2025, the Fed approved 145 M&A applications, up from 99 in 2024. The average processing time fell from 101 days to 85 days, while the median declined slightly from 58 to 56 days.

The distinction between the FDIC and Federal Reserve's processes could become increasingly important as banks rethink scale. Competition is no longer limited to other lenders, with traditional banks now facing tokenized deposits, stablecoin issuers, and fintech platforms offering services traditionally tied to bank accounts.