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Congress·Reported·H.R. 5262

Congress Would Ease Competition Review for Bank Mergers Creating Institutions Under $10B

Bank Competition Modernization Act

5 months ago·View on Congress.gov
⏸

Stalled

No legislative action in over 90 days.

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill tells bank regulators not to weigh monopoly and competition concerns for mergers that would create a bank or holding company under $10 billion in assets.
  • It applies to deals involving banks, bank holding companies, and savings-and-loan holding companies when they merge, buy another firm, or take on another firm’s assets or debts.
  • The $10 billion cutoff would rise over time, adjusted each year based on growth in the U.S. economy, using government GDP data.
  • Supporters may say this could make it easier for smaller and mid-size banks to combine and compete with bigger banks; critics may worry it could still reduce local choices.
  • For everyday customers, the main possible effect is fewer or larger local banks after more mergers—changing where you can bank, fees, and customer service, depending on your area.
EconomyConsumer ProtectionSmall Business

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(4)
Small Business Owner
Neutral
Gig Worker
Neutral
Union Member
Neutral
Housing Assistance
Neutral

Milestones

3 milestones6 actions
Nov 4, 2025House

Placed on the Union Calendar, Calendar No. 317.

Nov 4, 2025House

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-365.

Sep 16, 2025House

Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 24.

Sep 16, 2025House

Committee Consideration and Mark-up Session Held

Sep 10, 2025House

Referred to the House Committee on Financial Services.

What Happens Next

Projected impacts based on AI analysis

Right after it becomes law

If Congress passes the bill and the President signs it, the new “under $10B” merger review rule starts being used.

Small-bank mergers that stay under the threshold could move forward without regulators weighing “less competition” concerns, so customers may start hearing about more local bank merger announcements.

At the end of each covered year after enactment

FDIC adjusts the $10B asset threshold after years when the U.S. economy grows (based on nominal GDP).

Over time, more merger deals could qualify for the easier review, because the threshold can rise instead of staying fixed.

As soon as the law is in effect

The Federal Reserve applies the same “under $10B” rule to bank holding company deals it reviews.

Parent companies that own banks may be more willing to buy or combine smaller institutions, which can reshape local banking options.

As soon as the law is in effect

The Federal Reserve applies the same “under $10B” rule to savings and loan holding company deals.

Some thrift and savings-and-loan style institutions could consolidate more easily, which may affect mortgage and savings products in certain markets.

Source Information

Document Type

Congressional Bill

Official Title

Bank Competition Modernization Act

Bill NumberHR 5262
Congress119th Congress
ChamberHouse of Representatives
Latest ActionPlaced on the Union Calendar, Calendar No. 317.

Sponsor

Analysis generated by AI. Always verify with official sources.