What is the difference between a bank and a regional bank?
Regional banks are so called because they have historically operated within geographical regions larger than those covered by community banks but smaller than the country at large. Traditionally, they have taken deposits from within a defined geographic area and made loans to individuals and businesses in that region.
A super regional bank is similar to a large national or global bank in terms of assets, revenue, and scale of activities, but does not operate on a global level. The super regional category typically refers to banks with more than $50 billion in assets.
The scope of the RRB is limited to agricultural finance, small sector loans, crafts and other small sector loans, while the scope of commercial banks is broad, offering not only agricultural finance but also housing loans,Car financing, letters of credit, loans to large companies and for many activities.
Compared to megabanks, local institutions offer lower fees, more free accounts, relationship-based banking, and personalized products and services. When you're ready to make the switch to a local bank, you'll want to visit the credit unions and community banks in your neighborhood.
The formal definition of a regional bank is one with between $10 billion and $100 billion in assets. This is in between community banks and large national banks.
There are many regional banks in the U.S. The following are just a few examples: Bank of the West. First Horizon Bank. Zions Bancorporation.
The firm's primary subsidiary is Wells Fargo Bank, N.A., a national bank that designates its Sioux Falls, South Dakota, site as its main office (and therefore is treated by most U.S. federal courts as a citizen of South Dakota).
PNC Bank, National Association (PNC Bank) is a Main Street, regional bank headquartered in Pittsburgh, Pennsylvania. PNC Bank provides a range of traditional retail banking, home lending, corporate and institutional banking and asset management products and services.
The Benefits of a Regional Bank
The majority of regional banks offer access to a wide array of small business banking products, and like their national counterparts, most offer competitive rates on savings accounts and loans.
- First Republic Bank (FRC) . Above average liquidity risk and high capital risk.
- Huntington Bancshares (HBAN) . Above average capital risk.
- KeyCorp (KEY) . Above average capital risk.
- Comerica (CMA) . ...
- Truist Financial (TFC) . ...
- Cullen/Frost Bankers (CFR) . ...
- Zions Bancorporation (ZION) .
What qualifies as a regional bank?
Regional banks are defined by their size in terms of assets, not the geographic area they serve. The Federal Reserve defines a regional bank as one with $10 billion to $100 billion in assets. Regional banks typically provide products like checking accounts, loans, and credit cards.
Its holding company, U.S. Bancorp, is number 150 on the Fortune 500 list. It is one of the largest full-service, regional banks in the United States with brick-and-mortar branches and various offerings including checking, savings, and certificate of deposit accounts.
JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.
When it comes to safety, there's no discernible difference between small banks and big banks. "As with bigger institutions, local banks are safe banking options as long as they're federally insured," Insider says.
The Federal Reserve defines community banks as those with less than $10 billion in assets and regional banks with total assets between $10 billion and $100 billion. Any bank with combined assets of $100 billion or more is considered a large financial institution.
FDIC Insurance
Most deposits in banks are insured dollar-for-dollar by the Federal Deposit Insurance Corp.
It also has a significant presence in the U. S., where its business is concentrated on the East Coast. Basically, in the U.S. market, it is a large regional bank.
There are numerous agencies assigned to regulate and oversee financial institutions and financial markets in the United States, including the Federal Reserve Board (FRB), the Federal Deposit Insurance Corp. (FDIC), and the Securities and Exchange Commission (SEC).
| Star Rating | Bank Name | Operating States |
|---|---|---|
| ★★★★½ | Bank of Tampa | FL |
| ★★★★½ | Bank of Texas | TX |
| ★★★★½ | Bankers Trust Co | IA, AZ |
| ★★★★½ | Bankplus | MS, LA, AL, FL |
These Banks are in Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New York, Philadelphia, Richmond, St. Louis and San Francisco.
Is Capital One a regional bank?
Capital One is unique among the super-regional banks in that it has national lending platforms for credit cards and auto finance.
- CFG Bank.
- Cross River Bank.
- The Federal Savings Bank.
- Frost Bank.
- Huntington Bank.
- NBKC.
- PNC Bank.
- Ridgewood Savings Bank.
These states are Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Texas. You cannot open an account outside of these areas. Regions offers more than personal banking accounts.
The 12 Federal Reserve Banks and their 24 Branches are the operating arms of the Federal Reserve System. Each Reserve Bank operates within its own particular geographic area, or district, of the United States.
KeyBank, the primary subsidiary of KeyCorp, is an American regional bank headquartered in Cleveland, Ohio. Key ranked 449th on the 2022 Fortune 500 list based on its 2021 revenue.
