Banking sector
MarketsDefinition
US public banks classified as "Financials" in GICS. Mega-banks (JPM, BAC, WFC, C, GS, MS) anchor the sector. Income comes from net interest margin, fees, trading. Sensitive to rate movements: rising rates expand NIM but also raise loan-loss provisions if borrowers can't pay. Inverted yield curves crush bank profits structurally.
Regional banks (KRE) are higher-beta and more sensitive to commercial real estate exposure. Banks were the epicenter of 2008 and 2023 crises.
Regional banks (KRE) are higher-beta and more sensitive to commercial real estate exposure. Banks were the epicenter of 2008 and 2023 crises.