FDIC’s Hill pushes faster merger review process

This regulatory update from the FDIC could eventually change how your financing partners operate behind the scenes. Vice Chairman Travis Hill is pushing for a significantly faster bank merger review process. In some cases, acquisitions could be processed in as little as five days. For retailers, this matters because your lending partners—the banks that actually fund your consumer loans—often use mergers to grow their balance sheets or acquire new technology. A faster merger process could lead to quicker consolidation in the banking sector. This often results in larger lenders with more capital to deploy, but it can also mean your current financing partner gets acquired by a larger entity with different risk appetites. Additionally, the FDIC is proposing rules to ensure state-chartered banks have the same powers as national banks. This is a big deal for the 'Bank Model' used by many fintechs and BNPL providers. These companies often partner with state-chartered banks to offer financing across state lines. Strengthening the parity between these bank types protects the legal framework that allows you to offer consistent financing terms to customers regardless of which state they live in. If these proposals pass, it could lead to a more stable and competitive landscape for the firms providing your customer credit programs.

Source: Banking Dive

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