OCC will swiftly approve 'healthy' bank mergers – acting head

The Office of the Comptroller of the Currency will move to swiftly approve mergers it deems healthy and scrutinize those that are not.

"We can move forward in a timely manner where factors are all satisfied. But where there are questions, that takes time," acting Comptroller of the Currency Michael Hsu told reporters June 14.

Hsu said the Office of the Comptroller of the Currency (OCC) views mergers that are pro-competition, pro-financial stability and pro-community as "healthy." Mergers that do not meet those standards will face more scrutiny.

"It's important to have healthy mergers. They're good for the economy. They're good for the banking industry," Hsu said. "Where there may be an unhealthy merger, we will apply appropriate scrutiny as required by law."

One area of particular importance, especially among large bank mergers, is financial stability.

"I've gone out and said, 'Hey, for large banks, I have particular concerns on financial stability.' So that's part of the discussion," he said.

The acting OCC head also said his agency is continuing its work with the US Department of Justice on updating the framework for analyzing mergers. While he did not give a time frame, he said the two agencies have slightly different approaches and that is figuring into the discussions.

"The DOJ has antitrust capabilities and so that has a particular flavor to it, and the way that's evolving and playing out, that's different," he said.