SKN | Huntington–Cadence Deal Approved: What a $7.4B US Bank Merger Signals for Cross-Border Capital Strategy

Key Takeaways:

• Regulatory approval of Huntington’s $7.4B acquisition of Cadence Bank confirms continued consolidation across the US banking sector.
• The transaction strengthens capital scale and geographic reach, while subtly reshaping counterparty concentration.
• For internationally structured clients, US bank consolidation heightens the need for diversification across jurisdictions and custody models.

US regulators have granted final approval for Huntington Bancshares to proceed with its $7.4 billion acquisition of Cadence Bank, removing the last significant regulatory hurdle in one of the most notable regional bank mergers of the current cycle. While the transaction is US-focused, its implications extend to globally diversified families and entrepreneurs with exposure to American banking institutions.

Why US Regional Bank Consolidation Matters to Global Wealth Holders

This approval reinforces a clear structural trend: scale has become a regulatory and operational requirement within US banking. Rising compliance costs, capital thresholds, and technology investment demands continue to pressure mid-sized banks, accelerating consolidation across the sector.

For high-net-worth individuals, consolidation introduces a less visible but material shift — greater counterparty concentration. As fewer institutions control a larger share of deposits, lending, and liquidity access, the importance of bank selection, balance-sheet strength, and jurisdictional exposure increases accordingly.

Capital Strength Comes With Strategic Trade-Offs

From a regulatory standpoint, approval reflects confidence in the combined institution’s capital adequacy, risk controls, and supervisory alignment. Larger banks are generally perceived as more resilient, benefiting from diversified revenue streams and enhanced buffers against economic stress.

However, resilience often comes at the expense of flexibility and customization. As banks scale, risk frameworks tend to standardize, credit processes tighten, and bespoke solutions become less accessible — particularly for clients operating across multiple jurisdictions.

For sophisticated families, the key insight is straightforward: size improves stability, but it does not replace strategic fit.

Cross-Border Structuring Implications for HNWIs

US banking consolidation reinforces the strategic rationale for multi-jurisdictional banking structures. Pairing US operating accounts with offshore custody — particularly in established financial centers — can enhance risk diversification, currency flexibility, and long-term capital preservation.

Rather than relying on a single banking jurisdiction, globally structured clients increasingly adopt a dual-track approach: US banks for operational liquidity and credit access; offshore private banks for custody, structuring, and legacy planning.

Looking ahead, investors should monitor how further consolidation affects credit availability, onboarding standards, and client segmentation. As the US banking landscape continues to narrow, proactive structuring — not reactive adjustments — will define successful wealth preservation strategies.

For a confidential discussion regarding how evolving US banking consolidation may affect your cross-border banking structure, contact our senior advisory team.

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