For the moment higher interest rate levels are affecting mostly regional US banks.
The much larger US money center banks have many business lines outside plain credit lines to lean on in times of higher interest rates. Investment banking, however, as far as deal making is concerned is also not doing very well.
Trading stocks and bonds and derivatives is doing relatively well, on the other hand.
Moderately higher interest rates are good for almost all banks since the deposits - credits interest rate differential is getting larger and via the interest margin both large and regional US banks can make higher profits.
The current interest rates around 5 % or in the future even possibly higher are threatening to disrupt the core banking model whereby clients cannot forecast their interest rates expenses.
All in all, US banks are currently undervalued, but if a financial crisis comes US banks could lose a lot of their value.
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