Merger Process Review Act
- Bill Number
- H.R. 6546
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-02-25: Placed on the Union Calendar, Calendar No. 453.
- Last Updated
- 2026-05-02T19:06:20Z
AI-Generated Summary
Purpose of the Legislation
The Merger Process Review Act (H.R. 6546) aims to increase oversight and improve the efficiency of how federal banking regulators handle applications for mergers involving insured banks and credit unions. It mandates periodic reviews to ensure these processes are timely, effective, and aligned with legal requirements, ultimately promoting a more transparent and accountable regulatory framework.
Key Provisions
- Mandatory Reviews: Starting one year after enactment and every three years thereafter, the Inspector General (an independent watchdog official) for each federal banking regulator must conduct a review of the agency's procedures for processing merger applications. This includes evaluating:
- Timeliness and efficiency using metrics like average and median processing times.
- Causes of delays that might prevent approved mergers from proceeding on time.
- Pros and cons of different review methods, as long as they follow the law.
- Effects of the review process and approved mergers on bank safety, overall financial stability, competition in the market, and access to financial services.
- Specific suggestions to enhance the process, focusing on speed and consistency while meeting legal duties.
- Reporting Requirements: Each Inspector General must issue a report to Congress with all findings and publish it online.
- Agency Responses: The relevant regulatory agency must submit a written response to Congress, including a plan to adopt the recommendations where appropriate, and publish it online.
- Definitions:
- Federal depository institution regulatory agency: Refers to the Federal Reserve Board, Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA).
- Insured depository institution: Banks or credit unions insured by the federal government against deposit losses.
- Insured depository institution merger application: Requests for approval to acquire a bank or credit union's ownership stakes, assets, or deposits, under specific laws like the Bank Holding Company Act and Federal Deposit Insurance Act.
Significant Changes to Existing Law
This bill introduces a new, recurring oversight mechanism that did not previously exist. Prior to this, there were no statutory requirements for Inspectors General to systematically review merger processes at fixed intervals or to report findings publicly with agency follow-up plans. It builds on existing merger approval laws (e.g., those governing bank acquisitions) by adding accountability layers without altering the core approval criteria.
Potential Impacts
- On Government Agencies: Regulators like the Federal Reserve, OCC, FDIC, and NCUA will face increased scrutiny, potentially leading to streamlined processes, reduced delays, and better resource allocation. Inspectors General will have expanded roles in evaluating agency performance.
- On Citizens and Financial Institutions: Approved mergers could happen faster, improving access to banking services, enhancing competition, and supporting financial stability. Banks and credit unions may benefit from clearer guidelines, reducing uncertainty in expansion plans. Everyday consumers might see indirect effects through more available or affordable financial products.
- On International Relations: No direct impacts, as the bill focuses on domestic U.S. banking regulation.
Main Stakeholders Affected
- Federal Regulators and Inspectors General: The Federal Reserve, OCC, FDIC, NCUA, and their oversight offices will conduct reviews and respond to findings.
- Insured Depository Institutions: Banks and credit unions seeking mergers, as the process could become more efficient.
- Congress: Receives reports and responses, enabling better legislative oversight of banking policy.
- The Public and Financial Sector: Broader stakeholders including depositors, investors, and competitors who rely on a stable and competitive banking system.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens compliance with existing banking statutes by mandating evaluations tied to factors like safety, soundness, and competition. It promotes transparency through public reports but does not change substantive merger approval standards, avoiding conflicts with administrative law.
- Constitutional Implications: Aligns with Congress's authority under Article I to regulate commerce and oversee executive agencies, enhancing checks and balances without infringing on agency independence.
- Political Implications: Could foster bipartisan support for regulatory efficiency in banking, potentially influencing debates on financial consolidation amid concerns over "too big to fail" institutions. It emphasizes accountability, which may appeal to those advocating for reduced bureaucracy in economic policy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Williams, Roger [R-TX-25]
Cosponsors (2)
Rep. Davidson, Warren [R-OH-8], Rep. Lawler, Michael [R-NY-17]
Recent Actions
- 2026-02-25: Placed on the Union Calendar, Calendar No. 453.
- 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-528.
- 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-528.
- 2025-12-17: Ordered to be Reported (Amended) by the Yeas and Nays: 52 - 0.
- 2025-12-17: Committee Consideration and Mark-up Session Held
- 2025-12-16: Committee Consideration and Mark-up Session Held
- 2025-12-09: Referred to the House Committee on Financial Services.
- 2025-12-09: Introduced in House
- 2025-12-09: Introduced in House
Bill Versions
- Merger Process Review Act — issued 2025-12-09 — PDF (4 pages)
- Merger Process Review Act — issued 2026-02-25 — PDF (8 pages)