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Glimmers of Hope: Stress Test Results Suggest Resilience in the Banking Sector

It’s been an interesting ride for the banking sector over the last year to say the least. The sudden surge in interest rates was first seen as a boon for their net interest margins, only to become a huge albatross around their necks. Several bank failures later and banks have become the markets’ pariah.

However, investors may want to rethink that position.

The banks easily aced the Fed’s latest stress tests and many have begun to raise their dividends. And yet, the crisis still has many bank shares on sale. For income seekers, the banks—both big and small—could be great buys today.

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