Most of the banks deemed to be potentially challenged are community lenders with less than $10 billion in assets.
These banks need to either raise capital, likely from private equity sources as NYCB did, or merge with stronger banks, Graham said.
There are other signs of mounting stress among smaller banks.
They ranged in size from $90 billion in assets to under $1 billion, according to Fitch.
He predicts a surge in merger activity from lenders between $3 billion and $20 billion in assets as smaller firms look to scale up.
Persons:
Klaros, Steven Mnuchin, Brian Graham, Graham, you've, PacWest, Banks, Jerome Powell, Powell, Fitch, Brendan Mcdermid, I've, Chris Caulfield, West, Spencer Stuart, You've, Frank Sorrentino, Stephens, It's, that's, Sorrentino
Organizations:
Silicon Valley Bank, Federal Reserve, Klaros Group, York Community Bank, ex, Fitch, Federal Deposit Insurance Corporation, Traders, New York Stock Exchange, Reuters, U.S, First Republic, Mercer Capital, Bank, Dominion Bank, Capital, Regulators
Locations:
Silicon, California, New York City, U.S, Toronto, West Monroe, FirstSun, Seattle