US regional banks rise as Fed cuts rates by 25 bps

Shares of U.S. regional lenders rise in afternoon trading as Federal Reserve cuts interest rates by 25 bps

Fed also indicates it will steadily lower borrowing costs for the rest of this year

Truist Financial TFC.N, Huntington Bancshares HBAN.O, Regions Financial RF.N, M&T Bank MTB.N, Comerica CMA.N, Fifth Third Bancorp FITB.O and Citizens Financial Group CFG.N rise between 2% and 3%

Rate cuts can ease deposit costs for regional banks and boost loan demand while cutting the risk of borrower defaults

Regional banks rely more on traditional lending, unlike big banks that have other revenue streams such as investment banking and trading