"Concerns Rise Over US Regional Banking Shares Amid New York Community Bancorp Plunge"

Shares of US regional banks, including New York Community Bancorp (NYCB), continued to decline, with the KBW Regional Banking Index falling 1.4% after NYCB's surprise loss and dividend cut. NYCB's acquisition of Signature Bank and Flagstar Bank pushed its assets above a $100 billion regulatory threshold, leading to stricter requirements. Analysts believe NYCB's issues are unique, but Moody's has put its ratings on review for a potential downgrade. Concerns about eroding net interest income (NII) and exposure to troubled commercial real estate (CRE) are also impacting regional banks, with investors expecting a non-recessionary and lower interest rate environment.