Canadian Banks on prowl for US Banks

Posted: January 12, 2011 in Banks
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The start of the new year has the Canadians looking south. “The regional banks, mid-sized banks and community banks are up for grabs,” according to some wall street analysts. Canadian banks, involved in a record $15.9 billion of acquisitions last year, may target U.S. lenders such as:

  • SunTrust Banks Inc.,
  • Zions Bancorp
  • Regions Financial Corp.
  • BB&T Corp.

“The big five Canadian banks are well-positioned to expand their presence.” Canada’s banks, ranked the world’s soundest for three straight years by the World Economic Forum.

SunTrust, Georgia’s biggest bank, would “fit the bill” for either Royal Bank of Canada or Toronto-Dominion Bank, which have consumer-banking operations in the U.S. Southeast. It received $4.5 billion through the Treasury Department’s Troubled Asset Relief Program (TARP).

“With Canadian banks being cash-rich and stable, they’re now in a position to look abroad.”

At the end of October, Canadian banks had about ($35 billion) in capital that could be used for acquisitions, according to Barclays Capital analyst John Aiken.

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