“Under a Democratic president, financial regulators would likely adopt a more proactive and involved stance compared to a Republican administration,” Fortgang writes in his July 23 note. “This will influence bank mergers, capital requirements, and regulations governing consumer finance and nonbank financial systems.”
Stronger regulations over the US financial sector would continue with a Democrat in the White House, says Gil Fortgang, Washington associate analyst for the US equity division at T. Rowe Price. This is seen by the increased supervision during US President Joe Biden’s tenure and before the country’s bank failures in March 2023.
However, other factors such as loan demand, credit risk, inflation and the outlook on interest rates will have a greater influence on the sector’s performance after the election, he adds.
