• Republican lawmakers urged the Federal Reserve to further accelerate bank merger and acquisition reviews
• Chairman French Hill called for a review of long-pending applications and removal of approval bottlenecks
• Lawmakers want broader use of delegated authority to speed routine decisions
• The Federal Reserve's inspector general previously identified delays and recommended process improvements
• Officials say complex reviews, public comments and interagency coordination can extend processing times
• Republicans argue lengthy delays create uncertainty for banks, customers, employees and investors
• The Department of Justice has also introduced reforms to streamline antitrust merger reviews
• Analysts expect a more supportive regulatory environment to encourage additional bank consolidation



House Financial Services Committee Chairman French Hill and 14 fellow Republican lawmakers are pressing the Federal Reserve to further accelerate reviews of bank merger and acquisition applications, arguing that lengthy approval processes create unnecessary uncertainty and risk despite recent progress in reducing regulatory delays.

In a letter sent to Federal Reserve Vice Chair for Supervision Michelle Bowman, the lawmakers called for "additional progress" in shortening review times and urged the central bank to conduct a comprehensive assessment of long-pending applications.

They asked Bowman to identify obstacles preventing timely decisions, outline current and planned initiatives to improve processing times, and provide milestones demonstrating how the Federal Reserve intends to modernize its approach.

The lawmakers also encouraged broader use of delegated authority, allowing more merger applications to be approved without requiring a formal vote of the Federal Reserve Board.

They argued that such measures would improve efficiency while maintaining appropriate regulatory oversight.

The latest congressional intervention reflects growing momentum behind efforts to modernize the regulatory framework governing bank consolidation.

Since the return of the Trump administration, analysts have reported renewed confidence within the banking industry that well-structured mergers stand a greater chance of gaining regulatory approval after several years of heightened scrutiny.

Industry observers expect merger activity to continue increasing as regulatory reforms become more firmly established.

Republican lawmakers acknowledged that the Federal Reserve has already made improvements but argued that additional work remains, particularly in addressing delays caused by adverse public comments and lengthy internal reviews.

They noted that many problematic transactions are abandoned long before a formal application reaches regulators.

"Most proposals formally presented to regulators are the survivors of a substantial vetting process between motivated private parties while problematic proposals are abandoned before such formal presentation," the lawmakers wrote.

Their request builds on recommendations issued by the Federal Reserve's Office of Inspector General, which concluded earlier this year that merger application processing had slowed and that weaknesses in data collection limited the central bank's ability to monitor efficiency.

The watchdog recommended additional guidance for staff, improved use of the FedEZFile application tracking system, expanded reporting capabilities and better identification of recurring issues across applications.

The Federal Reserve agreed to implement those recommendations.

Federal Reserve officials have previously acknowledged that multiple factors contribute to processing delays, including incomplete information submitted by applicants, consultations with other regulatory agencies, background investigations, internal supervisory reviews and consideration of adverse public comments.

Complex transactions can also raise policy questions requiring additional analysis before approval decisions are reached.

Lawmakers warned that prolonged reviews can undermine the commercial value of acquisition targets while creating uncertainty for employees, customers and investors.

They argued that prompt regulatory decisions are essential to maintaining confidence in the banking sector and allowing institutions to pursue strategic growth opportunities without prolonged periods of uncertainty.

The congressional push comes as the Department of Justice has also introduced reforms designed to reduce the burden associated with merger reviews.

The department recently announced a return to more targeted antitrust investigations, narrowing the scope of information requests where appropriate while preserving its ability to investigate transactions that present genuine competitive concerns.

Associate Attorney General Stanley Woodward said the revised process is intended to "eliminate bureaucratic burdens while preserving the integrity" of merger investigations, enabling faster and more efficient reviews without weakening enforcement.