Bank of America: Three Catalysts May Help U.S. Regional Bank Stocks Catch Up

Bank of America Securities pointed out that U.S. regional bank stocks are lagging behind large bank stocks and the overall stock market, but policy and macro factors may change this situation. Analyst Ebrahim Poonawala listed three major catalysts: the Federal Reserve's annual stress test results, the June non-farm payroll report, and the expiration of the tariff suspension period. If the test results show that the capital adequacy ratio is above the required level, it may encourage funds to flow into regional banks; if the employment report shows cracks, it may trigger concerns about credit quality; reaching a free trade agreement with major trading partners will help credit growth