Drop In Oil Prices To Curtail Regional Banks’ Lending?

Further drop in oil prices to $80 barrel coupled with slower shale oil production would have some negative consequences for banks in Texas regions, notes Sterne Agee. Terry McEvoy and team at Sterne Agee in their research report dated October 14, 2014 titled: “Regional Banks and Falling Oil Prices” unravel answers to the question whether drop in oil prices would impact the regional banking sector. Oil prices: Regional banks exposed to upstream operations The Sterne Agee analysts note while historically universal and foreign banks have been the primary lenders to larger energy-related borrowers with a few U.S. regional banks also…