(Bloomberg) -- PNC Financial Services Group Inc. Chief Executive Officer Bill Demchak said the Biden administration's stance on financial-industry consolidation will create challenges for large-scale bank deals in the near future.
“The political environment for scale acquisition, and the regulatory environment is going to be challenging for a period of time,” Demchak said Tuesday at an investor conference hosted by Barclays Plc. Even so, he still sees opportunity for his firm.
“Inside of that tough environment, I continue to think that smaller institutions will struggle to remain relevant, and therefore are going to be for sale,” he said.
PNC completed its takeover of Banco Bilbao Vizcaya Argentaria SA's U.S. business in June, an $11.6 billion transaction announced last year that PNC says makes it the fifth-largest U.S. bank by assets. Smaller U.S. lenders have been partnering up to compete with firms such as JPMorgan Chase & Co. and Bank of America Corp., which are moving into new states and spending billions annually on digital offerings.
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