WASHINGTON–By a 220-207 vote, the House of Representatives has passed a joint resolution that nullifies the Office of the Comptroller of the Currency’s 2024 rulemaking banning expedited bank merger reviews.
“Many small banks rely on mergers to grow and stay competitive in today’s market. The Biden-era OCC rule on bank merger reviews would have imposed burdensome standards that stifled innovation and competition and limited consumer choice in the banking sector,” Rep. French Hill (R-AR), chair of the House Financial Services Committee, said in a released statement.
Rep. Andy Barr (R-KY), who led the effort in the House, said when he introduced the legislation, “The regulatory purgatory, the indecision, is what we’re concerned about here.”
According to Barr, the 2024 OCC rule discouraged “responsible growth,” adding Tuesday’s move “supports healthy competition and helps prevent bank failures.”
“Customers now demand advanced technological features such as mobile and online banking, which requires substantial capital investments. Mergers often present the only viable path for these institutions to keep up with these regulatory and technological costs and continue serving their local communities,” Barr said in a released statement.
Support of Banking Industry
The legislation has the support of the banking industry.
In September of 2024, the OCC under the Biden Administration finalized the rule it said was intended to increase transparency in the merger evaluation process.
More Than 600 Sign Letter
Separately, America’s Credit Unions reported that more than 600 credit union presidents and CEOs joined together to send a letter to the U.S. House of Representatives ahead of the vote on what President Trump has called “One Big Beautiful Bill,” which does not include among its many provisions any language that would change the credit union tax exemption. As the CU Daily reports separately, that legislation has now passed the House.
“On behalf of America’s roughly 4,500 credit unions, we write to extend our gratitude for your commitment to the American people,” the letter states. “We know that each of you has America’s best interests at heart and want each American to have the opportunity to succeed. To be productive. To be fulfilled. To realize their potential. And when that happens, America becomes stronger.
“The story of America’s credit unions is the story of America: created out of necessity in response to adversity. Bringing people together to create a better life and fulfill the American Dream. Our tax status reflects our mission—to foster financial well-being, strengthen communities, and serve those consumers that banks have left behind,” the letter continues. “Taxing credit unions means taxing the very people who rely on us the most. Credit unions were created by their members to fan those flames. To build homes. Better neighborhoods. Better communities. And in turn, a better America.
“Credit unions are one of the best investments the U.S. government makes with a roughly 1,300% annual rate of return. Removing the credit union tax exemption would cost the federal government $30 billion in lost income tax revenue over the next 10 years. GDP would be reduced by $266 billion, and 822,000 jobs would be lost over the next decade, but more importantly the 142 million Americans, small businesses, and communities that we collectively serve will be left behind when they need us the most,” the letter states.
