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Weekly Market Update

Regional vs Diversified Banks

Head of North American Investment Strategy & Research

Insight of the Week

  • The regional bank scare back in March of 2023 was one of the fallouts of the Federal Reserve’s aggressive rate hiking schedule that took the policy rate from .25% all the way up to 5.5% over an 18 month period. 
  • As seen in the chart included in the below, prior to this event, the smaller regional banks and the larger diversified banks had tracked each other well. 
  • However, the event clearly impacted the regional banks much more, and the gap between these two remains wide and has yet to converge.

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