Magazine : Archives : 1st Quarter 2019

Don’t Hold Your Breath for the Next M&A Wave

You would be excused for thinking today’s environment has all the ingredients needed to fuel M&A activity in the banking sector, due in large part to recent actions served up by lawmakers in Washington. The tax cut, signed in December 2017, subjects businesses to the lowest corporate income tax rate in seven decades, boosting profitability for the banking industry by 20 percent. And the regulatory relief bill passed by Congress in May 2018 raises the threshold for financial institutions to be considered systemically important and more narrowly construes the definition of brokered deposits, among other benefits. Yet, while these changes...