Bank Application Processing Improvements

Bank Failure Prevention Act of 2025This bill revises the Federal Reserve Board’s review process of merger and acquisition applications for bank holding companies. Specifically, the board must notify the applicant within a certain time period regarding whether the application is complete or if additional information is required. The board must grant or deny such an application no later than 90 days after submission, regardless of whether the application was deemed complete. (Currently, the board must grant or deny an application no later than 90 days after receipt of a complete application.) In addition, the board is prohibited from basing such application determinations on information provided by third parties.

1. This bill requires the Board to confirm if an application is complete within 30 days. 2. If the Board does not act on an application within 90 days, it is automatically approved. 3. The Board can extend the 30-day review period for complex applications by another 30 days. 4. The Board must only consider information provided by the applicant when determining application completeness. 5. The bill sets clear deadlines for the Board to make decisions on applications from bank holding companies.