The Federal Reserve said that it will begin reporting twice a year statistics, timing and other information on bank applications for mergers, acquisitions and new branches. The Fed will also report on the outcomes of those applications, including approvals, denials and withdrawals.
A bank may withdraw an application if the Fed notifies the bank that it is likely to be turned down. Between 2009 and 2012, approximately 10 percent of the 7,000 applications were withdrawn — more than a third of which were based on the Fed signaling that it would deny the application.
The Fed listed several reasons that an application might be recommended for denial, including low ratings on safety and soundness, consumer compliance and the Community Reinvestment Act; capital, liquidity or other financial concerns; and the experience and capability of management, among others.