Credit unions buying banks to get added scrutiny in FDIC reviews

by Bloomberg Law

A key US financial regulator is planning to take a closer look at credit unions snatching up community banks as those M&A deals reach a record high in 2024.

The Federal Deposit Insurance Corp., in bank merger guidelines issued Sept 17., said it may for the first time require credit unions to provide more information on proposed bank deals so the agency can assess whether they serve community needs.

Credit unions aren’t subject to the Community Reinvestment Act, a 1977 anti-redlining law that measures banks’ lending and investments in low- to moderate-income communities.

continue reading »