What is Super Regional Bank?
Super Regional Bank is a medium-sized financial institution with an important presence in a multi-state geographic region. It is similar to large domestic and global banks in terms of assets, returns and scale of activity, but it does not operate at the global level.
- Super Regional Bank is a medium-sized financial institution with an important presence in a multi-state geographic region.
- Super Regional Banks are similar to large domestic and global banks in terms of assets, revenues and scale of activity, but they do not operate at the global level.
- The Super Regional category typically refers to banks with assets in excess of $ 50 billion.
- US Super Regional Banks include US Bancorp, Bank of New York Mellon (BoNY), Capital One, Keycorp, PNC Financial Services Group, and BB & T Corp.
Understand Super Regional Bank
Super Regional Banks are much larger than Regional Banks and Community Banks and operate in multiple states or territories within the country. For this reason, Super Regional Banks can be thought of as occupying the middle class of the banking sector between regional / community banks and global banks.
These banks typically offer all types of banking services, from deposits and loans to securities brokerage, investment banking and cash management. Some ultra-regional banks started out as regional banks and expanded across state boundaries with the acquisition of deposits, branches and customers.
The Super Regional category typically refers to banks with assets in excess of $ 50 billion, but size alone is not sufficient criteria to determine whether a bank can be considered Super Regional. US Super Regional Banks include US Bancorp, Bank of New York Mellon (BoNY), Capital One, Keycorp, PNC Financial Services Group, and BB & T Corp.
Super Regional is significantly smaller than Money Center Banks (Citibank, JP Morgan, Bank of America, etc.) and has less systemic risk, but is affected by tighter financial regulations after the financial crisis. Congress passed the Dodd-Frank Financial Reform and Consumer Protection Act in 2010. During the legislative session, banks considered “too big to fail” were raised to a minimum capital requirement and required regular liquidity assessments and stress tests by the US Federal Reserve.
Super Regional Banking Institutions have expanded their service offerings in recent years to include and expand the number of capital markets and investment banking operations. Some Super Regionals have grown significantly by acquiring smaller rivals and gaining market share from the community and regionals. Bank.
Many are also geographically expanding and actively growing through transactions. In particular, KeyCorp and BB & T have added hundreds of branches and made significant additions to their asset base through mergers and acquisitions.
Systemically important financial institution (SIFI)
The threshold to be included on the SIFI list was $ 50 billion in assets. As a result, many Super Regionals have experienced more regulatory constraints and compliance requirements. Then, in 2018, the Dodd-Frank Act was partially rolled back in response to a wave of complaints from small banks struggling to handle the costs of complying with tighter regulations. ..
This raised the SIFI threshold to $ 100 billion and increased assets to $ 250 billion 18 months later. The largest super regionals (such as PNC and BoNY) will continue to fall into the SIFI category, but smaller banks such as KeyCorp and BB & T will no longer be considered SIFI.