The Business Times
SUBSCRIBERS

Short-sellers circle US regional banks as oil slide

Published Sun, Dec 7, 2014 · 09:50 PM
Share this article.

New York

SOME US regional banks have benefited in a big way from the energy-related lending growth, but the recent slide in oil prices has raised the spectre of persistently low oil prices hobbling loan growth at these banks. As a result, a number of these banks have caught the eye of short-sellers who are betting on the stocks taking a hit in coming days.

The recent drop in global crude oil prices has raised fears about potential production cuts in US shale plays and several Wall Street analysts are taking a more cautious stance on energy lending growth at these banks. For Texas and Oklahoma-based banks, including BOK Financial, Cullen/Frost Bankers, Prosperity Bancshares and Comerica, oil and gas production loans are an important part of their portfolios.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Banking & Finance

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here