The Often-Ignored Regional Banking Sector

Abstract

With the focus of financial reform placed on reducing the risks associated with being "too big to fail,"; it is the nation's largest banks that have been subject to the most scrutiny. Regional banks—midsize banks with a small market share—have not warranted comparable attention. Regional banks have not been plagued by too-big-to-fail issues, but they are not without vulnerabilities. As regulation of the financial industry evolves to tailor regulatory and reporting requirements to the risks posed by different types of financial institutions, more needs to be learned about any potential risks posed by regional banks.