WASHINGTON – The FCIC has announced a number of proposals around decision recissions and withdrawals of proposed rules.
Among the moves made by the FDIC:
- It approved a proposal to rescind the agency’s 2024 Statement of Policy on Bank Merger Transactions. The FDIC said its proposal will reinstate, on an interim basis, the Merger Policy Statement that was in effect prior to 2024 as the agency conducts a broader reevaluation of its bank merger review process.
“The proposal approved today seeks to address concerns the 2024 Statement added considerable uncertainty to the merger application process,” the agency said. “While the FDIC considers broader revisions to its merger policy, the FDIC is proposing to return to its historical approach, which is well-understood by market participants.
- The three withdrawals of proposed rules relate to brokered deposits, corporate governance, and the Change in Bank Control Act (CBCA).
- The FDIC is withdrawing authority for staff to publish in the Federal Register a proposed rule related to incentive-based compensation arrangements.
“The brokered deposits proposal…would have significantly disrupted many aspects of the deposit landscape,” the FDIC said. “The corporate governance proposal was… “overly prescriptive and process-oriented expectations for management and boards of directors of FDIC-supervised institutions with $10 billion or more in total consolidated assets.
“The proposal related to the CBCA … “would have removed an exemption from the requirement to submit a notice to the FDIC for an acquisition of voting securities of a depository institution holding company for which the Federal Reserve reviews a CBCA notice,” the FDIC said.
The proposal related to incentive-based compensation arrangements was approved by the FDIC Board on May 3, 2024, but was never published in the Federal Register.
- The FDIC board also delayed the compliance date of certain provisions under the FDIC’s Sign and Advertising Rule. Specifically, the delay applies to requirements related to the display of the FDIC’s official sign on insured depository institutions’ (IDIs) digital channels, as well as to provisions related to IDIs’ automated teller machines (ATMs) and like devices, the agency said.