Perspectives on Bank M&A Transactions for 2021

A surge in bank M&A may soon be on the way. The reasons can be traced mostly to the 2007-08 financial crisis and the resulting Great Recession. An onslaught of new regulations increased institutions’ compliance costs, while Federal Reserve actions to combat the crisis created a low net interest environment that continues to this day. As a result, bank profitability—which is also challenged by credit quality concerns, significant asset growth in low-yielding assets, weak loan demand, …