Fifteen regional banks and savings institutions including SunTrust, Capital One and KeyCorp have tapped the Treasury's Troubled Asset Relief Programme so far. Further capital infusions are expected as banks obtain the necessary board and regulatory approvals. While the intent of the programme was to revive lending in locked credit markets, the capital is also providing a catalyst for consolidation.

“These funds, while still strengthening our capital base, will enable us to expand lending and step up acquisitions,” said Dowd Ritter, chief executive of Regions Financial, which took $3.5bn of capital.

Ohio-based Huntington Bancshares, which tapped the plan for $1.4bn, said the capital would permit them to “give consideration to any strategic opportunities that may arise to expand... through the purchase of weaker banks”.