New York (CNN Business)After a decade-long lull, flashy mergers between American banks are back.
The announcement last week that BB&T ( and )SunTrust ( will )join forces, forming the sixth-largest US bank, has sparked industry chatter that other mid-size US banks could team up to take on the sector’s heavyweights.
There are several reasons why this makes sense. Rising tech costs make scale more attractive. Competition from the banking giants, startups and even non-banks, like private equity firms, is squeezing regional players. And middle-tier banks want to keep expanding their balance sheets, forcing them to find other ways to chase growth.