Canadian Banks Eye US Mergers Amid Consolidation Wave

Canadian banks may enter the US regional consolidation wave as US regulators have signaled a friendlier stance on mergers. Large regional US banks, such as M&T Bank and PNC Financial, are likely on the hunt for acquisitions. Spain's Banco Santander agreed to acquire Webster Financial in a $12 billion deal, the largest-ever takeover of a US lender by a bank from continental Europe. Canadian banks are flush with capital and may consider US acquisitions, but the window for deals may close after the US midterm elections.