PYMNTS, August 19, 2024, Regional Banks Pursue Mergers And Acquisitions To Enhance Competitiveness
More than two-thirds of the banks in the KBW Regional Banking Index have a greater than 50% chance of being acquired within the next 12 months, the report said, pointing to a Reuters analysis of LSEG’s StarMine M&A data.
This surge in deal-making is driven by the need for regional banks to scale up, diversify and compete more effectively in the current landscape, according to the report.
Regional banks have faced pressure due to several factors. Elevated interest rates have dampened borrowing, increased competition for deposits has driven up industry deposit costs, and losses on commercial real estate loans have strained regional banks’ balance sheets, the report said.
