Bank mergers are increasingly subject to official and public scrutiny. As a result, conscientious bankers are updating their once minimal due-diligence procedures. These revisions have led to substantially stronger asset-valuation techniques, coupled with rigorous reviews of loan portfolios and overall credit risks.
Despite these advances, due-diligence undertakings often overlook regulatory compliance. Increasingly, regulators and special-interest groups are focusing on compliance matters in reviewing or contesting consolidations.