American regional banks accepted more than $30bn of fresh capital from the US Treasury on Monday in a move that is likely to spur a consolidation of the US banking sector.

Fifteen regional banks and savings institutions, including SunTrust, Capital One and KeyCorp, have tapped the Treasury’s Troubled Asset Relief Programme (Tarp) so far. Further 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.