Large Regional Bank Periodic Review

...Peer Review Completed: As part of its annual large regional bank peer review on Oct. 3, Fitch Ratings affirmed nine ratings with a Stable Rating Outlook, downgraded two ratings with a Stable Rating Outlook (FITB and WFC), upgraded one rating with a Stable Rating Outlook (RF), and revised two Outlooks to Stable from Negative (CMA and KEY). Stable Outlook for Sector: The stable outlook for the large regional bank universe is supported by good liquidity and capital profiles, still-benign asset quality and diverse earnings profiles. Cyber Risk Remains Central: A material downturn in the credit cycle is not expected over the near term. Cyber risk remains a key theme in bank risk, particularly following the recent Equifax hack. However, there is very limited visibility into this industry risk. Non-Bank M&A to Continue: We expect M&A at these banks to focus on non-bank transactions, particularly in wealth management, insurance, capital markets and fintech. Fitch does not expect material bank M&A...

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