The biggest US banks are facing tougher competition for deposits and shelling out more to keep them. That doesn’t bode well for their smaller peers.
America’s regional lenders begin reporting second-quarter earnings this week after months of upheaval laid bare a collection of balance sheet weaknesses that took a handful of them down. Some, like KeyCorp and Zions Bancorp, have already warned of revenue declines amid deposit pricing pressures, but the acknowledgment Friday by JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. that they’re facing such pressures underscores the toll it could take on their smaller, often less-diversified rivals.
Read More : Regional Banks Compete for Deposits Amid Looming Tougher US Rules