Texas Capital Ratchets Up Oil Deals as Other Banks Quit Market.

Regional banks in the US and Canada, such as Texas Capital Bank, Truist Securities, and BOK Financial, are increasing their involvement in oil, gas, and coal deals as European banks retreat from the sector due to climate regulations. These regional banks are climbing the league table of top lenders in fossil fuel transactions, and they are benefiting from a period of consolidation in the US oil and gas sector and declining interest rates. This shift towards regional banks in the financing of fossil fuels is seen as a significant change for the industry, although concerns have been raised about the lack of prudential regulations for these smaller banks. Meanwhile, large banks on Wall Street, including Wells Fargo, JPMorgan Chase, and Bank of America, continue to provide significant loans for the fossil fuel sector. The study also highlights the phenomenon of finance substitution, where fossil fuel clients are finding alternative sources of financing outside the banking sector. [Extracted from the article]