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Matthias Knab, Opalesque:

BlackRock writes on Harvest Exchange:

As the first months of the new administration unfold, one sector that seems poised to benefit from both lighter regulation that the Trump administration promises, as well as the Federal Reserve's (Fed's) path toward higher interest rates, is financials . Within the financial sector, regional banks may be particularly well positioned due to their simplified, lending-focused business models.

As the name suggests, regional banks are depository institutions that operate across groups of states but below the national level. These organizations could see potentially significant regulatory relief under the new administration if they are legally differentiated from larger, more complicated bulge bracket banks, which represent the country's largest multinational investment banks.

For example, there are proposals to raise the $50 billion threshold for "Systemically Important Financial Institutions" ( SIFIs ), a Dodd-Frank designation for 33 banks whose failure could trigger a financial crisis. With many regional banks at present grouped alongside bulge brackets under the current minimum, increasing the threshold could grant regional banks more operational freedom than their larger peers.

Broadly speaking, regional banks earn revenue from lending and pay fees on ......................

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