In an effort to streamline its corporate structure and regulatory requirements, Zions Bancorporation is merging its holding company with its bank, and has also been declared not a “systemically important financial institution” by the Financial Stability Oversight Council.
“Zions engages in limited capital markets activities, presents minimal fire sale risks, uses a simple operational structure, and is subject to extensive regulation and supervision,” said Treasury Secretary Steven T. Mnuchin in a press release. “The Council determined that there is not a significant risk that Zions could pose a threat to U.S. financial stability, and I am pleased that the Council used its authority to promote regulatory efficiency.”
“The merger will streamline our regulatory framework and eliminate duplicative examinations and other overlapping regulatory requirements,” said Harris H. Simmons, chairman and CEO of Zions Bancorporation. The merger of the holding company and the bank takes effect Sept. 30, after stockholders voted to approve it.
Zions has spent the past four years looking for ways to simplify how it does business, said James Abbott, director of investor relations and external communications. While S.2155 – the Economic Growth, Regulatory Relief and Consumer Protection Act – contributed to reducing smaller banks’ regulatory requirements, Zions had decided to pursue this path before the bill was put forward, he said.
“We like to think we’re helpful and important to people, and our employees and families, and our communities,” Abbott said. “We do not believe we were systemically important to the nation.”
Zions contributes approximately .015 percent to the U.S. gross domestic product.