Rising Rates Won't Break Bank Stocks

The sort of increases likely to happen don't imply the degree of risk that some investors anticipate, according to S&P analysts

Investors may be unduly worried about the damage rising interest rates might do to financial stocks. That's the view of Evan Momios, Standard & Poor's equity analyst covering the stocks of banking and financial-services companies. Momios points out that there are offsetting factors, notably economic growth and the fact that banks have made progress in recent years "controlling their expenses, improving the credit quality of their portfolios, and developing sources of revenue not sensitive to interest rates."

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