Randy Benjenk’s commentary was featured in a Law360 article about the OCC’s expanded fast-track merger review and licensing pathways for banks under $30 billion in assets.
According to Randy, while the OCC has already begun processing merger and other licensing applications in a more streamlined fashion under the Trump administration, the OCC’s rule provides another nudge for it to continue doing so.
"It will certainly help reinforce the overall tone from Washington, which is that the agencies aren't going to sit on applications anymore," he said.
Still, Randy said the rule's greater significance may lie less in the expedited procedures themselves than in the line it draws around what qualifies as a community bank.
By extending that category to institutions with up to $30 billion in assets, the OCC is bringing its regulatory framework closer to the realities of a banking sector that has grown and consolidated significantly over the years, Randy believed.
"The OCC is resetting the definition of a community bank in a way that is particularly notable," he stated. "A lot of banks in the $10 billion to $30 billion range that were previously considered mid-sized should be cheering about this because they'll finally be treated as the community banks they really are."
Randy added that the changes may also help make OCC charters more attractive for institutions weighing their options. Because banks can choose between federal and state charters, faster transaction approval procedures could give the OCC a competitive edge.
"The easier it is to do a corporate transaction — the more straightforward it is, the more streamlined it is, the less time it takes to get done, the fewer fees you have to pay consultants to get it done — the more attractive that charter form looks," Randy said.
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