The whirlwind weekend in late April that witnessed the nation’s largest bank taking control of its most troubled regional lender signaled the conclusion of one set of problems while ushering in a new phase.

Following the successful acquisition bid for First Republic, a lender catering to affluent coastal families with $229 billion in assets, JPMorgan Chase CEO Jamie Dimon offered reassuring words that investors had been yearning for after weeks of turbulent volatility: “This chapter of the crisis has come to an end.”

Nevertheless, even as the dust settles from a series of government takeovers of failed midsize banks, the underlying factors that ignited the regional banking crisis in March continue to exert their influence.

Escalating interest rates will exacerbate losses on banks’ securities holdings and prompt depositors to withdraw funds, placing pressure on the primary revenue stream for these institutions, CNBC has reported.

Banks are only beginning to experience the impact of losses on commercial real estate and other loans, further diminishing their profitability.

With the collapse of Silicon Valley Bank exposing regulatory oversights, supervisory authorities will shift their focus to midsize institutions.

What lies ahead will likely constitute the most significant transformation of the American banking landscape since the 2008 financial crisis.

Over the next few years, numerous executives, advisors, and investment bankers who spoke with CNBC predict that many of the country’s 4,672 banks will be compelled to merge with stronger counterparts, either due to market forces or regulatory intervention.

Written by staff