The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

US bank M&A: Foreign players retreat from US retail banking

Regulation dampens appeal of operating subsidiaries; Capital requirement changes put lid on M&A

Last month it emerged that Royal Bank of Canada was looking to get out of US retail banking. Although a bank spokesman would not comment, analysts and bankers say that RBC is exploring options for its US banking franchise, which has about $95 billion in deposits. Canadian peer TD Bank, which had aggressively acquired US banking operations during the crisis to become the eighth-largest bank by deposits in the US, has also halted its expansion there. HSBC is looking to sell its upstate New York branches, and Spanish banks Santander and BBVA, which had been expanding in the US, are also now quiet as they tackle domestic problems.

During the financial crisis, foreign banks stepped in to buy up struggling US banks or to expand operations, taking advantage of the fact that the large US retail banks were having to cut back or were restricted in making acquisitions. The US retail market had been difficult for foreign players to break into, and the crisis seemed to open the door to competition from abroad. But, says Brian Foran, managing director and senior bank analyst at Nomura: "Many of the foreign banks have had trouble making it work."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree