Comments due on OCC proposal regarding business combinations involving national banks and federal savings associations

On January 29, the Office of the Comptroller of the Currency requested comment on a proposed rulemaking that would update the OCC’s rules under 12 C.F.R. § 5.33 for business combinations involving national banks and federal savings associations. The proposal also includes a policy statement to clarify the OCC’s review of applications under the Bank Merger Act (BMA).

The proposed rulemaking is part of the OCC’s effort to enhance transparency around its process of reviewing transactions under the BMA. It would also serve to provide additional guidance to stakeholders around the OCC’s review of applications. The proposed policy statement specifically would discuss:

• General principles for the OCC’s review of applications under the BMA, including indicators for applications likely consistent with approval and applications that raise supervisory or regulatory concerns
• The OCC’s consideration of the financial stability; managerial and financial resources and future prospects; and convenience and needs statutory factors under the BMA
• The OCC’s decision process for extending the public comment period or holding a public meeting

A comment period of 60 days will open when the notice of proposed rulemaking is published.

• Overview of the proposed rulemaking
• Related OCC Bulletin 2024-4
• UPDATE 2/13/2024: Published at 89 FR 10010 on 2/13/2024, with a comment period ending 4/15/2024.
• UPDATE 4/10/2024: Comment period extended to June 15, 2024, according to OCC news release. The notice of extension was published 4/15/2024 at 89 FR 26106.