In a statement, the U.S. Federal Reserve stated, it has approved the merger between BB&T Corp and SunTrust Banks Inc.
The deal is the biggest in the banking industry since the 2007-2009 global financial crisis.
According to analysts, such a tie-up was made possible due to regulatory easing under the Trump administration.
The current administration has encouraged banking regulators to take a more relaxed approach to approving mergers, bank applications and enforcement of post-crisis rules.
According to the Federal Reserve, its approval is subject to several conditions which include, BB&T divesting 30 branches and more than $2.4 billion in deposits to mitigate the competitive effects of the merger. Further, SunTrust will also have to satisfy the terms of a newly-issued consent order.
The Fed had found that SunTrust had misled certain business customers regarding the operation and billing for some products.
In a statement, both companies said they were pleased to have received regulatory approval.