SVB, Signature Failures Could Change How US Reviews Bank Mergers

March 14, 2023, 9:00 AM UTC

Silicon Valley Bank and Signature Bank’s sudden collapses may drive federal regulators to recalibrate how they assess financial stability requirements in their merger reviews.

Overly stringent financial stability requirements would make it difficult for the regulators to approve mergers and potentially deter a healthy bank from considering buying a distressed bank, industry watchers say.

Two of the main bank regulators—the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency—are currently reviewing how they evaluate bank mergers. The failing regional banks making headlines this week could now push them toward less prescriptive merger rules that allow more ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.