Congress Passed a Law to Grow Community Banks. Regulators Are Making It Easier to Merge Them Away.
The 21st Century ROAD to Housing Act, signed into law in July 2026, launches a two-year pilot to make it easier to charter new community banks. At the same time, the OCC and FDIC have rolled back merger review rules and bank mergers hit a four-year high in 2025. Washington is subsidizing new small banks with one hand while clearing the runway to swallow them with the other.