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What Does the Stress in Regional Banking Mean for U.S. Smaller Companies?

The banking sector is an integral part of the U.S. small-cap investment universe

Curt Organt, Portfolio Manager
T. Rowe Price,  May 2023

Key Insights

  • The impact of recent failures in the U.S. banking sector, and the rapid withdrawal of deposits across some regional U.S. banks, has been profound.
  • For smaller company investors, the stress in the U.S. banking sector is acutely relevant given that regional banks represent a key component of the investment universe.
  • While the recent crisis has been destabilizing, at this stage, few regional banks appear to be exposed to similarly severe liquidity and/or concentration risk.


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