Regional banks are getting a boost as the AI gold rush spills out beyond Wall Street.
Activity among manufacturers, equipment suppliers, and other large and midsize firms that borrow from regional banks is heating up. That's adding to investor hopes that regional lenders with sizable commercial banking arms have another growth stream, even if they are largely sitting out of the data center financing boom.
The State Street SPDR S&P Regional Banking ETF (KRE) traded near a record high earlier this week. Since the start of the year, it has climbed 17%, outperforming major stock indexes.
Demand for commercial and industrial loans strengthened in the second quarter. A net 16.1% of banks reported higher demand from large and midsize companies, up from 4.8% in the previous quarter, according to the Federal Reserve's senior loan officer survey.
Bank loan officers said increased investment in plants and equipment and greater financing needs for inventories were among the reasons companies were borrowing more.
#regional #banking #midsize #financing
Activity among manufacturers, equipment suppliers, and other large and midsize firms that borrow from regional banks is heating up. That's adding to investor hopes that regional lenders with sizable commercial banking arms have another growth stream, even if they are largely sitting out of the data center financing boom.
The State Street SPDR S&P Regional Banking ETF (KRE) traded near a record high earlier this week. Since the start of the year, it has climbed 17%, outperforming major stock indexes.
Demand for commercial and industrial loans strengthened in the second quarter. A net 16.1% of banks reported higher demand from large and midsize companies, up from 4.8% in the previous quarter, according to the Federal Reserve's senior loan officer survey.
Bank loan officers said increased investment in plants and equipment and greater financing needs for inventories were among the reasons companies were borrowing more.
#regional #banking #midsize #financing
2 days ago
