As a result, the M&A market is likely to gather pace in 2014,
as midsized banks seek asset growth and small banks look
for scale. However, a longer regulatory approval process may
be an impediment to volume growth.12 Actively engaging
regulators at the onset of M&A plans will likely make for a
much smoother process. Further, banks should ensure M&A
plans fully align with their strategies, fit within their risk and
governance structure, and are rich with efficiencies, especially
in today’s cost-conscious environment.
Shifting the focus to foreign-owned banks, regulatory
pressures may force the sale of capital-intensive
businesses that aren’t generating sufficient returns.
European banks’ retreat may limit their ability to capture
benefits from a recovery in the U.S. and growth in other
international markets