While the market fell almost 2 percent on Friday, the regional bank sector bucked the trend as it was the only sector to finish in the green.
The strength can be attributed to two major factors, Fed stress tests and rising interest rates.
The Fed revealed that all 31 of the largest banks have enough capital to weather losses in the event of an economic downturn -- the first time every bank has passed the central bank's annual stress tests.
The largest U.S.-based banks "continue to build their capital levels and to strengthen their ability to lend to households and businesses during a period marked by severe recession and financial market volatility," the Fed said on Friday.
An interest rate hike by the Fed would lead to the regional banks being able to charge more to lend money, thus increasing their bottom ...
/www.benzinga.com/etfs/sector-etfs/15/03/5313697/bullish-catalysts-for-regional-bank-etfs alt=Bullish Catalysts Are Boosting These Regional Bank ETFs>Full story available on Benzinga.com
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