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A top US bank regulator is proposing new limits on big bank mergers, following the failure of Silicon Valley Bank and two other lenders last year, and the recent market turmoil around New York Community Bancorp, which grew rapidly after successive acquisitions.
The new restrictions being put forward by the Federal Deposit Insurance Corporation would kick in for any corporate combination that would result in a bank with more than $50bn in assets and significantly increase for any deal over $100bn, lowering the past threshold for scrutiny, which was generally more than $250bn.
The FDIC’s proposal would be the first update to its bank merger rules since 2008, and is subject to a 60-day comment period.
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