The recent troubles of the U.S. banking industry are well known. The Federal Reserve’s aggressive rate hikes since last year were one of the reasons for the collapse of the three regional banks this year. These bank failures were the biggest since the financial crisis of 2008.
Despite assurances that the banking system is safe, investors remain concerned. In this scenario, investors could look beyond boundaries as foreign banks have stable growth prospects and are available at attractive valuations. To that end, it could be wise to add fundamentally strong foreign bank stocks Barclays PLC (BCS), Deutsche Bank Aktiengesellschaft (DB), and Erste Group Bank AG (EBKDY) to one’s watchlist.
