Regional banks are wary about going over $10 billion in assets because it will trigger a review by the Consumer Financial Protection Bureau, force them to beef up risk-management measures and perform an annual stress test. As a result, some are moving toward slower growth and deliberately taking measures to avoid an influx of cash. "We think, for the time being, to be below $10 billion is important," said Cathleen Nash, chief executive of Citizens Republic Bancorp and a Consumer Bankers Association board member. "You don't always have to be bigger to be more profitable."

Related Summaries