SVB, Signature Failures Could Change How US Reviews Bank Mergers

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 ...