Lawmakers File Resolution to Overturn OCC’s Bank Merger Rule

Republican lawmakers in the House and Senate are aiming to overturn a 2024 final rule that altered how the Office of the Comptroller of the Currency (OCC) reviews proposed bank mergers.

US Congressman Andy Barr has filed a joint resolution of disapproval under the Congressional Review Act to invalidate a final OCC rule concerning the review of bank merger applications under the Bank Merger Act.

The OCC’s final rule, which was finalized in September 2024, introduces a more rigorous review process for bank mergers by eliminating expedited procedures and ensuring transactions aren’t automatically approved without thorough scrutiny.

The rule aims to enhance transparency and build trust in the standards and procedures the OCC uses when reviewing bank merger applications.

However, Barr argued that the rule introduces new regulatory obstacles and vague, subjective standards that would significantly limit banks of all sizes, especially community and regional institutions — from pursuing mergers and strategic partnerships.

He also emphasized that responsible bank mergers are essential for driving financial innovation, enhancing efficiency and benefiting consumers. He warned that blocking these transactions under arbitrary standards could unintentionally accelerate consolidation by limiting smaller institutions' ability to compete.

Therefore, his resolution seeks to nullify the final rule and prevent the OCC from implementing “detrimental” merger regulation in the future without congressional authorization.

Barr said: “Mergers increase competition and make our banking system more dynamic. By allowing banks to realize economies of scale and pass cost savings on to consumers, these acquisitions result in better rates, lower fees, and expanded access to credit — especially in underserved communities.”

“This rule will lead to consolidation in the banking system, threatening the diversity that makes the US banking system the envy of the world. My resolution ensures that regulatory overreach does not threaten healthy mergers and acquisitions that strengthen our financial system.”