Bank Failure Prevention Act of 2025

The Bank Failure Prevention Act of 2025 would modify how the Federal Reserve reviews merger and acquisition applications from bank holding companies. Currently, the Federal Reserve has 90 days to approve or deny applications after determining they are complete. This bill would change that timeline so the Federal Reserve must make a decision within 90 days of the initial application submission, even if the application is incomplete. The bill would also prohibit the Federal Reserve from using information provided by third parties when making these decisions.

If enacted, this bill could affect the banking industry by potentially accelerating the merger approval process. Banks seeking to merge or acquire other institutions would face faster decision timelines, which could either facilitate consolidation in the banking sector or create pressure on regulators to make decisions with incomplete information. The bill has passed committee review and is eligible for a floor vote in the House, though it would still need Senate approval and presidential signature to become law.