Executive Letter: FDIC Regulatory Updates: Key Changes Affecting Banks + Updates on Nominations
By Rose Oswald Poels
Early last week, the FDIC announced several significant regulatory actions. Below is a summary of the most relevant developments:
Rescission of 2024 Bank Merger Policy Statement
The FDIC has proposed rescinding the 2024 Statement of Policy on Bank Merger Transactions, citing concerns over added uncertainty in the application process. This action reinstates the prior policy while the FDIC conducts a broader review of its merger framework.
Withdrawal of Proposed Rules
The FDIC has withdrawn proposed rules related to:
• Brokered Deposits – The proposal would have significantly altered the regulatory framework for brokered deposits.
• Corporate Governance – This proposed rule aimed to impose stricter governance requirements for banks with $10 billion or more in assets.
• Change in Bank Control Act (CBCA) – The proposal sought to modify filing requirements for acquisitions of voting securities.
• Additionally, the FDIC has rescinded its authority to publish a proposed rule on incentive-based compensation arrangements, which had not yet been adopted by all required regulatory agencies.
Extension of Compliance Date for Sign and Advertising Rule Changes
The FDIC has postponed the mandatory compliance date for certain provisions of its Sign and Advertising Rule from May 1, 2025, to March 1, 2026. This extension applies to digital display requirements and signage at ATMs, allowing the FDIC to refine the regulation based on industry feedback. Other provisions of the rule remain on track for May 1, 2025, compliance.
What This Means for Your Bank
These regulatory shifts indicate the FDIC’s current willingness to reconsider policies that may impose undue burdens or create uncertainty.
WBA is pleased to see the Trump Administration moving forward with an agenda that rolls back excessive regulation, and we will continue to advocate for that with all federal banking agencies. Moreover, we will advocate for additional relief when we are out in Washington, D.C. with bankers this spring at both the WBA/ABA Washington Summit and the WBA/ICBA Capital Summit.
Agency Nominations Status
In case you’ve been wondering where nominations stand at federal agencies that impact the banking industry, here is an overview:
• Travis Hill appointed as Acting Chairperson of the Board of Directors of Federal Deposit Insurance Corporation (for an overview of Hill’s statement outlining the current focus of FDIC, refer to my Feb. 18 Executive Letter)
• Andrew Ferguson confirmed as Chair of Federal Trade Commission
• Mark Uyeda serving as Acting Chair of Securities and Exchange Commission and Paul Atkins nominated as Chair
• Jeffrey Hall confirmed as Chair of Farm Credit Administration Board, Farm Credit Administration
• Scott Bessent confirmed as Secretary of Treasury
• Brooke Rollins confirmed as Secretary of Agriculture
• Kelly Loeffler confirmed as Administrator of Small Business Administration
• Scott Turner confirmed as Secretary of Housing and Urban Development
• Christopher Wright confirmed as Secretary of Energy
• Russell Vought confirmed as Director of OMB
On March 6, the Senate Banking Committee voted to advance to the Senate the nominations of Jonathan McKernan to be director of the Consumer Financial Protection Bureau and Bill Pulte to be director of the Federal Housing Finance Agency.
The committee also voted to advance the nominations of Stephen Miran to be chairman of the Council of Economic Advisors and Jeffery Kessler to be undersecretary of commerce for industry and security.
Please let me know if you have any questions or concerns as you closely review these updates. WBA will continue its diligence in advocating for regulatory and legislative frameworks that support the strength and stability of our member banks.
