Terminations of bank mergers have reached a record high this year and it could well be next year before M&A activity in the sector can restart, according to one analyst. “It won’t be a 2023 event,” says Nathan Stovall, director of financial institutions research at S&P Global Market Intelligence. “It will be 2024. Things aren’t going to get better. It will just take time.” The collapse of Silicon Valley Bank and Signature Bank and the seizure of First Republic Bank have effectively killed any big mergers in the sector, Stovall says. Terminations quickly reached a record this year when Toronto-Dominion Bank scrapped its planned $13.67 billion merger with First Horizon Corp. The two parties cited regulatory obstacles while media reports suggesting U.S. agencies were dubious about TD’s anti-money laundering policies.

Key Features Include:

  • The collapse of Silicon Valley Bank and Signature Bank
  • Terminations quickly reached a record this year
  • Interest rate hikes by the Federal Reserve played a role

Full Report:

Terminations of Bank Mergers Reach Record High