Davis Polk Financial Institutions practice head Margaret Tahyar was quoted on Marketplace discussing bank mergers for small and midsize banks.

“There is definitely a strong industrial logic in favor of bank mergers,” she said, noting that it can make it easier to compete against bigger banks for loan business and to improve the technology and services they offer customers. “The demands for consumers to have digital services have increased, especially since the pandemic.”

However, she said that we haven’t seen many deals, in large part because bankers aren’t sure what regulators will do. “It is very hard, and takes a very long time, to get an approval for any kind of merger,” Margaret said. “And there’s a very high degree of uncertainty.”

“Acquire or be acquired may be the new reality for small and midsize banks,” Marketplace (March 14, 2024) 

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