Bank Failure Prevention Act of 2025
The Bank Failure Prevention Act of 2025 would standardize and accelerate how certain bank-related merger and acquisition applications are processed. It requires regulators to notify applicants within 30 days whether the record on an application is complete (or what information is still needed), allows a 30-day extension for complex cases, and treats an applicant’s submission of requested information as making the record complete unless the regulator finds deficiencies. It also sets a firm 90-day deadline for regulators to grant or deny these applications from the initial filing; if the regulator has not acted within that window, the application is deemed granted unless the applicant asks for an extension. The bill applies similar rules across three types of institutions: bank holding companies, savings and loan holding companies, and insured depository institutions merging applications, with the same process for completeness, third-party information handling, and time limits. In short, the bill aims to reduce regulatory delays and bring more predictability to approvals for certain acquisitions, while ensuring the applicant-driven information is the basis for completeness and establishing hard decision deadlines.
Key Points
- 1Completeness notice within 30 days: Regulator must tell the applicant, in writing, whether the record is complete or what missing information is needed.
- 2Extension for complexity: The 30-day completeness period can be extended by up to 30 days if the application is unusually complex.
- 3Applicant response and completeness: Once the applicant provides the requested information, the record is deemed complete unless the regulator determines the response is materially deficient and then issues a detailed deficiency notice within 30 days.
- 4Third-party information not used for completeness: The completeness determination must rely on information provided by the applicant, not on third-party reports or recommendations.
- 5Hard 90-day decision deadline and “deemed granted” consequence: Regulators must grant or deny the application within 90 days of initial submission; if no action is taken, the application is deemed granted (with a tolling option of up to an additional 30 days by mutual extension). The same structure applies across bank holding companies, savings and loan holding companies, and insured depository institutions.