Revitalizing bank merger review

The banking sector has experienced significant consolidation over the last four decades. Some evidence suggests that many small businesses, households, and communities have been left worse off in the wake of these transactions due to branch closures, reduced access to capital, higher fees, and fewer choices. This trend has created risks to financial stability, as many “too-big-to-fail” banks grew through multiple acquisitions in the years prior to the 2008 financial crisis. These developments have raised questions regarding the rigor of the government’s review of bank mergers. In 2021,…