Former BB&T CEO Sees Relief Coming for Regional Banks

How might regional banks benefit from tax reform compared to larger financial institutions?

• They are less affected by tax policy changes.

• They have lower earnings growth potential.

• They have higher real tax costs.

• They have more effective tax shelters.

What is a potential effect of tax policy on loan growth?

• No impact on borrowing needs.

• Decreased need for borrowing due to better cash flows.

• Increased need for borrowing due to lower cash flows.

• Immediate increase in loan demand.

Why are tax changes considered beneficial for the banking industry in the long term?

• Tax changes increase the number of loans banks can offer.

• Tax changes reduce operational costs for banks.

• Banks have historically paid higher marginal tax rates.

• Banks pay lower marginal tax rates than other industries.

What is one reason net interest margins have increased despite a narrowing spread?

• Banks have reduced their liquidity positions.

• Banks have not passed deposit beta to consumers.

• Banks have passed deposit beta to consumers.

• Loan demand has significantly decreased.

What factor is likely to drive banks to raise deposit rates?

• Decreased loan demand.

• Increased loan demand.

• Lower liquidity positions.

• Higher excess reserves.