Despite healthy credit quality, regional bank stocks have been wracked by slowing loan growth and worries that the recent corporate tax cuts may diminish credit demand even further. However, the Fed’s decision on a new four-tiered regulatory structure should allow banks in in the bottom half (generally, those with $100-700 billion in assets) of the system to focus on building up larger loan portfolios, stronger profitability, and overcoming recent underperformance . . .

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