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Today, the House Financial Services Committee is holding a Financial Institutions Subcommittee hearing, led by Subcommittee Chair Andy Barr (KY-06), to explore opportunities to improve transparency and efficiency in the bank merger review process and promote a more competitive and accessible banking landscape.

Read Subcommittee Chair Barr’s opening remarks as prepared for delivery:

"I now recognize myself for four minutes for an opening statement.

"First, let me thank our witnesses for joining us today and for lending their expertise to such an important discussion.

"This Subcommittee is focused on how we, in Congress, can strengthen competition and encourage innovation in the banking sector – particularly by improving the bank merger process and creating a regulatory environment that supports the formation of new banks.

"Despite what my colleagues on the other side of the aisle like to attest, mergers and acquisitions are not inherently bad. In fact, they’re an essential part of a dynamic and evolving financial system.

"They allow community and regional banks to grow into new markets, reach more customers, diversify their services, and achieve economies of scale – all of which can translate into lower costs and better access to banking services for families and small businesses across the country. In reality, mergers are pro-competition – something all the capitalists in this room should promote.

"But today, the merger process is broken.

"The current system for reviewing bank mergers is too slow, too uncertain, and too costly. Delays and unpredictable agency reviews discourage applications, drain bank resources, and lead to employee attrition – all while deterring the kind of strategic consolidation that could benefit consumers.

"That’s why I introduced the Bank Failure Prevention Act, a bill to bring more certainty and efficiency to the merger review process.

"This bill would put a shot clock on merger applications, requiring federal banking agencies to complete their merger reviews within a specific time frame, which will provide clarity to applicant banks and reduce unnecessary, costly delays.

"I’ve also introduced a Congressional Review Act resolution to overturn the political and harmful merger rule issued under the prior administration – a rule that has thankfully been rescinded by Acting Comptroller Rodney Hood.

"But we must prevent future leadership from reinstating those misguided policies, and I intend to see that resolution through. This CRA has passed the Senate, and I urge House leadership to bring it to the Floor for a vote.

"On a separate front, I remain deeply concerned about the decline in de novo bank formation – which has all but dried up since Dodd-Frank. In the past ten years, only 60 new banks have been chartered in this country. That’s not a sign of stability – it’s a sign of stagnation.

"That’s why I introduced the Promoting New Bank Formation Act, which recently passed this Committee with bipartisan support. This bill would give new banks the breathing room they need by phasing in capital requirements and lowering the community bank leverage ratio in their early years.

"We need to remove barriers – not build them higher – if we want to revitalize community banking.

"Because the truth is this: a banking system with no new entrants and stifled growth isn’t safe – it’s fragile. The last decade has proven that excessive regulation is choking innovation, driving consolidation, and leaving too many communities without access to basic banking services.

"We need a course correction. Today’s hearing is an important step in that direction.

"I look forward to hearing from our panel and engaging in a thoughtful discussion.

"I yield back."