Trump’s regulatory relaxation boosts bank consolidation

Author: John Crabb | Published: 5 Feb 2019

US President Trump’s decision to give significant relief to banks with under $100 billion in assets has boosted small bank consolidations across the US.

As reported by IFLR in May the Senate Bill 2155, or the Economic Growth, Regulatory Relief and Consumer Protection Act, contained rule changes that had the potential to increase M&A activity as the banking industry looked to take advantage of its increased scope for growth and consolidation, suggest sources in the US banking sector.

Less than a year later, the creation of new categories for banking institutions with less than $100 or $250 billion in assets is stimulating consolidation amongst smaller banks that would not have considered it previously. 

Fifth Third Bank stock slumped after its $4.7 billion merger with MB FinancialFor instance, a recent merger of equals between TCF Bank and Chemical Financial created a new institution with around $45 billion...