A modernized regulatory framework for bank merger transactions should reflect changes in financial services, the diversity of consumer and small business needs and the interests of community banks, CSBS said in a comment letter to the FDIC.  

The FDIC has solicited comments as it undertakes a comprehensive review of all aspects of the existing regulatory framework applicable to bank merger transactions.   

In a letter filed Tuesday, CSBS recommended that the FDIC: 

• Reevaluate the Herfindahl-Hirschman Index calculation in light of technological innovations, market expansion and consumer preferences; 
• Consider how banks reach customers through new technologies when accounting for market share and concentration; 
• Create a de minimis exception for certain transactions to preserve the viability of community banks; 
• Incorporate the role of states in the federal regulatory framework of bank merger transactions; 
• Promote alignment and consistency across the federal banking agencies and the DOJ; and  
• Provide greater clarity around the objective, scope, and criteria of modernizing the regulatory framework for the benefit of regulators, the banking industry and the public.