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Acting FDIC chair signals more open approach to bank mergers, declines to endorse specific DIF reforms
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Summary
Acting FDIC Chairman Travis Hill said the agency has adopted a more open-minded approach to bank mergers in 2025 and withdrew its 2024 policy statement; on proposed changes to the Deposit Insurance Fund, Hill said the FDIC will provide constructive analysis to Congress but will not take positions on specific bills.
At the FDIC's third-quarter 2025 press briefing, Acting Chairman Travis Hill said the agency has "adopted a more open minded approach to M&A" this year and confirmed the FDIC withdrew its 2024 statement of policy as it retools review processes.
"I think it's fair to say that, in 2025, the FDIC has adopted a more open minded approach to M&A," Hill said, adding that the agency has been working to make its process "speedy and efficient" and that "there is likely to be more to come in terms of our overarching bank merger policy." He framed the shift as internal policy work and did not announce new rulemaking at the briefing.
Reporter Katanga Johnson (Bloomberg) asked whether the FDIC would be open to nontraditional buyers—including private equity or cryptocurrency firms—acquiring banks for licenses. Hill did not enumerate permissible buyers at the briefing but said the agency has been "thinking about proactive adjustments to our legacy approach to bank mergers" and emphasized process improvements.
On proposals pending in Congress to reform the Deposit Insurance Fund, Hill said the FDIC "is not taking a position on any particular piece of legislation, but are trying to be constructive" and that agency staff have been engaged with Hill offices to provide feedback and analysis. "Given what we observed in 2023, it makes sense that this is a topic of conversation," he said.
When asked about litigation challenging a special assessment tied to the 2023 banking crisis, Hill said he was "not aware of any other institutions that are... challenging or considering challenging," declined to comment on active litigation, and described the assessment outcome as effectively a zero-sum allocation across the industry.
The remarks indicate the FDIC is reassessing how it reviews mergers and will provide analysis to Congress on DIF reform proposals but will not publicly endorse or oppose specific bills at this time. Officials offered no timetable for formal policy changes and directed reporters to the FDIC communications office for follow-up.
