BPI Statement for the Record on Senate Bank M&A Hearing

Washington, D.C. – The Bank Policy Institute today submitted a statement for the record to the Senate Banking Committee’s Subcommittee on Economic Policy for today’s hearing entitled “Bank Mergers and the Economic Impacts of Consolidation.” Bank M&A enables scale that benefits consumers, and the need for clear bank merger policy that supports a robust banking system is more salient in light of recent banking stress, BPI said in the statement.

Just as taking preventive steps to strengthen a healthy patient is preferable to emergency surgery, mergers between healthy banks are better than eleventh-hour transactions in a failure. Openness to bank M&A among top policymakers is necessary to ensure the banking system remains healthy even under stress and continues to meet the needs of customers.

It is encouraging to see some policymakers expressing openness to bank M&A, but this message conflicts with signals from other officials, the statement said. In addition to acknowledging the potential benefits of M&A, policymakers should provide clear expectations and timelines for merger approvals, as lengthy delays can impose tangible costs on bank customers, employees and investors, it said.

Bottom line: “We encourage the Subcommittee to consider the economic benefits of bank M&A and the costs of precluding it,” the statement said. “A predictable path forward for bank mergers promotes a healthier banking system and a more stable U.S. economy.”

To read the full statement, click here.

Learn more about our work on M&A:

###

About Bank Policy Institute.

The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.

Media Contact

Tara Payne

tara.payne@bpi.com

Media Inquiry

  • This field is for validation purposes and should be left unchanged.