The change follows the FDIC’s decision to reverse a tougher merger framework introduced in 2024. In its latest regulatory update, the agency said the previous policy made applications longer, harder and less predictable and outlined an effort to reduce unnecessary friction in future deals.
The Fed, meanwhile, continues reviewing mergers involving bank holding companies and state-member banks under its own process, including competition, financial strength, community needs and anti-money-laundering controls.
The FDIC Has Reversed Its 2024 Approach
The shift began when the FDIC rescinded its 2024 Statement of Policy on Bank Merger Transactions and restored its earlier framework.
The abandoned policy had introduced additional scrutiny around competition, financial stability and community effects, particularly for larger combinations. The newer direction instead emphasizes quicker decisions and greater predictability for applicants.
That matters as traditional lenders face growing pressure from fintech firms and new payment infrastructure. Banks are already experimenting with stablecoins partly to defend deposits, payments and settlement activity from crypto-native and fintech competitors.
The Fed Is Getting Faster, but Its Process Remains Separate
The Federal Reserve has also improved processing times, but it has not abandoned its independent merger-review framework.
Fed data shows it approved 145 M&A applications in 2025, up from 99 in 2024. Average processing time fell from 101 days to 85 days, while the median declined slightly from 58 to 56 days.
However, an inspector-general review found that between 2021 and 2024, median processing times had increased about 40% for small community-bank mergers and acquisitions. The report recommended better tracking of where delays occur.
The distinction could become increasingly important as banks rethink scale. Competition is no longer limited to other lenders: regulated banks are also confronting tokenized deposits, stablecoin issuers and fintech platforms offering services traditionally tied to bank accounts.
