Higher interest rates would help widen the difference between what banks charge on loans and pay on deposits, which would boost earnings for the financial sector. Regional banks are among the stocks most positively correlated to rising interest rates because higher rates improve net interest margins.

“Further Federal Reserve rate hikes, coming as soon as this month, are seen as hurting bank profits because borrowers may have a harder time repaying debts,” reports CNBC.

For more information on the banking sector, visit our financial category.

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