January 17, 2023
Federal Reserve Board Grants Bank of Montreal and BMO Financial Corp. Approval of Proposal
For release at 5:00 p.m. EST
The Federal Reserve Board on Tuesday approved the application from the Bank of Montreal of Montreal, Canada, and BMO Financial Corp. from Wilmington, Delaware, for the acquisition of BancWest Holding Inc. and thus indirectly for the acquisition of Bank of the West known from San Francisco, California.
In connection with the board approval, Bank of Montreal has committed to provide the board and the Federal Deposit Insurance Corporation with a preliminary update of its resolution plan that reflects the combined organization. Since BMO Financial Corp. would be subject to more stringent regulatory standards after the transaction, Bank of Montreal will also provide implementation plans for how it will comply with those standards, if any.
BMO Financial Corp. is normally in a two-year stress test cycle and received a new capital requirement last year. However, as the company’s capital requirement will not include the impact of today’s acquisition until 2024, the Board will recalculate the bank’s capital requirement based on the 2023 stress test to provide the company with an updated requirement in the meantime.
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Last updated: January 17, 2023