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Banking strategiesDecember 4 2023

Wave of consolidation could save smaller US banks

After a dip in US banking M&A activity in 2023, next year may see a wave of consolidation as smaller banks seek new competitive advantages.
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Wave of consolidation could save smaller US banksDallas-based Comerica reported that its profits fell by nearly 30%. Image: Cooper Neil/Bloomberg

Pressure on regional and community banks across the US remains strong. As fintechs continue to take their place in the financial sector, and with the largest banks — those with combined assets of $100bn or more — retaining enough capital to expand, smaller banks risk losing customers and revenue.

The Federal Reserve defines community banks as institutions with less than $10bn in assets and regional banks as those with total assets between $10bn and $100bn. 

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