Under the Bank Merger Act (12
USC 1828(c)), a federal banking agency receiving a merger application
must request the views of the other two banking agencies and the Department
of Justice on the competitive factors involved. Standard descriptive
terms are used by the Board, the Federal Deposit Insurance Corporation,
and the Comptroller of the Currency. The terms and their definitions
are as follows:
The term “monopoly” means that the proposed transaction
must be disapproved in accordance with 12 USC 1828(c)(5)(A).
The term “substantially adverse” means that the proposed transaction would have anticompetitive effects
which preclude approval unless the anticompetitive effects are clearly
outweighed in the public interest by the probable effect of the transaction
in meeting the convenience and needs of the community to be served
as specified in 12 USC 1828(c)(5)(B).
The term “adverse” means that proposed transaction
would have anticompetitive effects which would be material to the
decision but which would not preclude approval.
The term “no significant effect” means
that the anticompetitive effects of the proposed transaction,
if any, would not be material to the decision. 12 CFR 250.182.
