Mergers in the US banking sector will accelerate in the following year, anticipate the executives, driven by a more favorable approach from the regulatory authorities, closer competition and the need to spend more on technology, according to the Financial Times. The expectations for a dramatic multiplication of transactions between American banks are increasing since Donald Trump has won last year's presidential elections with the promise to restrict regulations and despocates businesses. But the volatility created by the commercial war carried by Trump has limited the acquisitions, only 78 being concluded so far, a total annual number on the way to be one of the lowest decades. Banking executives, lawyers and analysts hope that the environment will soon become more friendly to transactions. Many have predicted in recent weeks that the number of mergers will increase with the clarity regarding commercial policy, interest and economic prospects in the US. There are already signs that the hunger of transactions fruit benches, including the unofficial discussions that BNY wears with a lower Northern Trust rival regarding a possible combination. The United States has one of the most fragmented bank sectors in the world, even after the number of banks has been slightly under 4,500 in two decades until the end of last year. The vast majority of them are relatively small with assets below $ 10 billion. However, in the last four years the rate of conclusion of transactions in the sector has reduced by over 50% to an annual average of 173. This year there have been bank fuses of only $ 8.6 billion in the US, well below the total typical $ 50 billion. Lawyers and analysts say that the strict approach regarding the bank merger mergers during the Joe Biden administration has narrowed the transactions in recent years. They believe that a major change in the attitude of the authorities in favor of consolidation in the banking sector will be vital for stimulating the takeover. Michelle Bowman, vice -president of the supervision department within the US Central Bank, reported a much more friendly abode with banks in her first discourse after confirmation. The central bank could also rethink how it evaluates the degree of market concentration in rural areas to open the path of a larger number of transactions between smaller community banks. The other two main banking authorities in the US, FDD and OCC have already reported a more favorable position regarding bank fusion. Chris Marinac, research director at Janney Montgomery Scott, shows that an acceleration of consolidation in the banking sector will manifest more likely in 2026 than this year because the executives want to wait for the regulatory changes. Each of the two largest consumption banks in the US, JPMORGAN CHASE and Bank of America, has a share of over 10% of national deposits, which cannot make more purchases without special authorization. However, both banks increase the competitive pressure on the smaller banks, extending aggressively at national level. The need to invest in growing amounts in new technologies also encourage banks to increase their size. JPMorgan intends to spend $ 18 billion on technology this year, almost as much as the total NASA budget.
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