Everyone should plan for the banking landscape to chane. Banks will consolidate. We have mentioned this a number of times in prior articles and on “The Bob and Scott Show” podcast. Assuming our economy has turned… (big assumption)
- Banks will focus on being banks, others will not
- Ratios will come in line and traditional lending will be the core of the bank
- Healthy banks will look to buy growth from other entities where they can continue down the traditional path
The key here is to identify the players on the buy side and sell side. Until the sell side companies get the toxic assets and divisions off of their books they won’t be candidates, once they do the picture will be bright.
Consider some of the following names