Bank Mergers Face Higher Hurdle for FDIC Approval Under Plan (3)

US banks face steeper regulatory hurdles to buy another lender under a plan from the Federal Deposit Insurance Corp., the latest move by Biden-era officials to clamp down on consolidation by financial firms.

The FDIC on Thursday proposed new guidance that would add layers of scrutiny to the process of getting a green light for a merger. The plan, if ultimately finalized, would more directly take into account effects on financial stability, communities, and competition. The regulator would also have more discretion under the plan’s so-called principles-based approach.

During the Biden administration, financial regulators have expressed concerns that tie-ups ...