Will Regional Banks Like SunTrust, Regions Financial, and BB&T Do Well In 2010?

01/28/2010
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Many of the new banking regulations set to take place, or those already in place, have caused a dip in the stocks of larger financial institutions that, while not lasting a significant amount of time, have some economic analysts asking if smaller regional banks will fair just as well or better in 2010.

Some regional banks like SunTrust, Regions Financial, and BB&T, among others, had decent years in 2009, yet some didn’t come close to larger banks’ performance while, on the other hand, some did quite well.

One main reason people feel that small regional banks are better or safer than many of the big financial institutions is they are involved in less risky behavior and are thought to be less likely to get into a position where they would need bailout-like assistance from the government.

There were a lot of smaller community banks that did fail over the past year and more could be on the way, according to the FDIC, but there was no bailout money offered to the smaller institutions that weren’t dubbed “too big to fail.”

Also, there seems to be the idea that small community banks or even regional banks like SunTrust, Regions Financial, and BB&T are immune to the types of tactics and questionable practices that got the bigger institutions into trouble.

While some or most of the smaller regional banks aren’t involved in the type of financial practices bigger banks are, does that make them a better alternative or in a position to have a better 2010 than bigger banks due to new regulations?

Some regional and community banks do offer more personal service and assistance to customers.  However, many wonder if it is the small differences in regional banks versus big financial institutions that will put them on a more even playing field with this year.

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