Bank Shares Plunge to 91st in $1.15B Volume Amid Regulatory Pressures and Rate Cut Fears

On October 2, 2025, Bank shares traded with a volume of $1.15 billion, ranking 91st among active stocks. American Bank (BAC) closed 0.39% lower amid mixed market sentiment

Recent regulatory developments weighed on the sector as federal regulators announced stricter capital reserve requirements for mid-sized financial institutions. The new guidelines, effective by year-end, require banks with assets between $50 billion-$100 billion to maintain an additional 1.2% capital buffer. This follows a separate announcement from the Federal Reserve signaling potential interest rate cuts in Q1 2026, which dampened near-term yield expectations for lenders

Market participants reacted to a key earnings report showing Q3 non-performing loan ratios rising to 1.8% from 1.4% in the prior quarter. The bank also revised its full-year net interest margin forecast downward to 2.65% from 2.85%, citing faster-than-expected deposit growth. Analysts noted these figures aligned with broader industry trends observed in regional bank earnings reports

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