Washington, D.C. — Ahead of remarks from Assistant Attorney General for Antitrust Jonathan Kanter this morning on banking mergers, the American Economic Liberties Project today released a new report: “Revitalizing Bank Merger Enforcement To Restore Competition and Fairness in Banking.” Shedding light on the alarming consequences of bank consolidation in the United States, the report urges policymakers to strengthen bank merger controls and step up merger enforcement. Alongside the report, a coalition of 17 groups, including Americans for Financial Reform and the AFL-CIO, wrote to the major banking regulators, urging them to use their powers to fight bank consolidation.

“To protect working people and safeguard the dynamism and resiliency of our economy, regulators and enforcers must fight bank consolidation, not facilitate it,” said Shahid Naeem, Policy Analyst at the American Economic Liberties Project. “Rampant consolidation in our banking sector has made the harms of bank mergers clear: fewer jobs, less access to credit and critical financial services, and greater exposure to systemic risk and instability. By returning to the original letter and intent of the bank merger statutes, we can foster a fairer, stronger banking system.”

Consolidation in the banking industry has led to a drastic reduction in the number of banks from 15,000 in 1990 to just 4,000 today. The resulting concentration of power in the hands of a few large institutions has disrupted banking access, particularly in rural communities, hindered the provision of affordable financial products and credit for small businesses, and heightened systemic risk in the economy. Additionally, customer complaints regarding service disruptions and limited support have underscored the adverse impact of these mergers on Americans’ banking experiences.

Amid recent volatility in the banking industry, including the collapse of Signature Bank and Silicon Valley Bank, the new report serves as a comprehensive resource for enforcers, outlining the detrimental effects of bank mergers and emphasizing the importance of revitalizing the enforcement of existing laws. President Joe Biden’s 2021 Executive Order on Competition has called upon bank regulators to bolster oversight and prevent excessive market power. Banking agencies, including the FDIC and the DOJ, are actively reviewing and updating their merger review processes.

The broad coalition urging financial regulators to rein in banking consolidation includes the American Economic Liberties Project, American Family Voices, American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), Americans for Financial Reform, California Reinvestment Coalition, Communications Workers of America (CWA), Consumer Action, Freedom BLOC, Institute for Local Self-Reliance, Open Markets Institute, P Street, Patriotic Millionaires, Public Citizen, Revolving Door Project, Strong Economy For All Coalition, Texas Appleseed, and 20/20 Vision.

Read “Revitalizing Bank Merger Enforcement To Restore Competition and Fairness in Banking,” here.

Read the letter Secretary Yellen and Acting Director Hsu here.

Learn more about Economic Liberties here.