The banking industry has faced significant challenges since the beginning of the year. After the sector witnessed brief stability, major credit rating agencies have downgraded several banks and warned of potential rating downgrades for some of the nation’s biggest banks.
Amid the potential risks arising out of stricter lending norms, possible default of commercial real estate (CRE) loans, slowing loan growth, and rising deposit costs, it could be wise to add fundamentally strong major bank stocks, JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), and Bank of America Corporation (BAC), to one’s watchlist. Among these three stocks, BAC has better momentum.
