Despite significant declines in recent banking M&A volume, the trends that have driven banking M&A remain consistent. Many banks recognize that remaining competitive requires growth, organic or through acquisitions, regardless of the economic environment.
In parallel, banks must manage escalating regulatory scrutiny of M&A transactions and risk management capabilities. The OCC, for example, has highlighted that it may impose additional requirements and restrictions on banks that exhibit persistent weaknesses such as restrictions on a bank’s growth or divestures requirements1.
Banks engaging in M&A should look to manage risk and compliance expectations proactively and be prepared to demonstrate a disciplined approach for risk management integration to confidently address the heightened scrutiny from supervisors, and ultimately earning the trust and confidence of customers and key stakeholders.
The KPMG risk integration team brings a holistic, business, and operational risk perspective to integration needs. We help risk organizations execute effectively on their integration agenda by bringing a unique blend of risk and integration expertise, deep industry knowledge, tech-enabled tools and playbooks built in support of our numerous bank integration engagements over the last decade.
