President Joe Biden directed the Justice Department and federal banking regulators to more closely scrutinize bank mergers and make it easier for customers to switch banks.
Executive Order: As part of a broad executive order to promote competition, the president:
- Encouraged DOJ and the banking agencies to update guidelines on bank mergers to provide more robust scrutiny.
- Encouraged the Consumer Financial Protection Bureau to issue rules allowing customers to download their banking data and take it with them when they switch banks.
Fact Sheet: In a fact sheet noting that federal agencies have not formally denied a bank merger application in more than 15 years, the White House said excessive consolidation raises costs for consumers, restricts access to credit, and harms low-income communities.
ICBA Position: ICBA last fall encouraged DOJ to:
- Update its guidelines on reviewing bank mergers.
- Prioritize mergers in small markets that preserve the financial viability of small banks.
- Institute parity in its considerations of credit unions, Farm Credit System lenders, and online banks.
