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Bank M&A Activity Gathers Pace

(8 September 2026 – United States) US Banks are forecast to increase merger and acquisition (M&A) activity as the sector undergoes further consolidation within a more favourable regulatory regime.

The largest US bank merger so far, Banco Santander’s US$12.2 billion deal for Webster Financial, will lead to a deliberate integration according to Santander US CEO Christiana Riley. Santander is however determined to avoid customer disruptions in the midst of a significant core systems overhaul set to take place in 2027.

During the Biden administration, bank M&A faced heavy scrutiny – in particular large deals. Under the second Trump administration, reinstated merger standards and expedited merger reviews have accelerated turnaround times from over a year for deals to close on average to under a month in 2026 according to Brean Capital.

“The regulatory environment has become friendlier under the new administration. The largest deals are now clearly mirroring the smaller deals” commented Brean Capital Analyst Brian Martin for American Banker.

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