Fed Rethinks $10B Threshold as FDIC Revises Merger Reviews

The Fed plans to reconsider the $10 billion asset threshold used in bank supervision, S&P Global Market Intelligence wrote. Under the approach outlined by Fed Vice Chair Michelle Bowman, regulators would put more weight on a bank’s business model, complexity, and risk. That could allow some banks to grow beyond $10 billion without automatically facing tougher supervision.

Another S&P post discussed the FDIC’s proposed changes to bank merger reviews, which would count credit unions and thrifts as competitors and make the approval process easier for some banks. The proposal would still rely heavily on physical branches and local markets, leaving many nonbank competitors outside the standard competition analysis.