The House of Representatives has approved S.J. Res 13, a joint resolution aimed at reversing a Biden-era rule on bank mergers. The rule, issued by the Office of the Comptroller of the Currency (OCC), made it harder for small banks to merge and grow. Once signed by the President, this resolution will undo that regulation.
The Biden-era OCC rule raised the standards for approving bank mergers. Many lawmakers say this made it difficult for small banks to compete and innovate. Chairman Hill (AR-02) said, “Small banks rely on mergers to grow and stay competitive. The previous rule imposed heavy burdens that limited competition and consumer choice.”
Subcommittee Chairman Andy Barr (KY-06) added that modern banking requires costly investments in technology like mobile and online services. “Mergers are often the only way for small banks to cover these costs and continue serving their communities,” he said. Barr emphasized that this resolution supports healthy competition and helps prevent bank failures.
Rep. Mike Haridopolos (FL-08) called the old OCC rule “excessive red tape” that hurt small businesses and blocked beneficial mergers. He said reversing it will encourage innovation, reduce costs, and benefit consumers.
Rep. Tim Moore (NC-14) noted that community banks are vital to local economies. He said mergers help these banks manage rising compliance and technology expenses. “This resolution is a step forward for the economy,” Moore said.
The resolution’s passage reflects strong bipartisan support for easing restrictions on bank mergers. Lawmakers hope this will help small banks grow and better serve their customers. The resolution now awaits the President’s signature to become law.
Read More:
