Bank of America: Three major catalysts may help regional bank stocks catch up in the United States.

Data shows that since the beginning of this year, as of last Friday's close, regional bank stocks in the United States (KRX) have cumulatively fallen by 2.9%, lagging behind the 9.1% increase in large bank stocks and the 5% increase in the S&P 500 index. Bank of America Securities stated that regional bank stocks in the United States have been lagging behind large bank stocks and the overall stock market, but some policies and macro factors may change this situation. Analyst Ebrahim Poonawala listed some catalysts that may help regional bank stocks catch up, and specifically pointed out that positive factors that boost market confidence in the Fed rate cuts and achieving an economic soft landing would be key to boosting regional bank stocks. In the report, the analyst wrote, "Although regional bank stocks have performed poorly in the past, we believe that improved macroeconomic prospects and the resurgence of bank M&A deals will act as catalysts to drive funds into this sector." The analyst stated that the first catalyst is the results of the annual stress test conducted by the Fed. The test showed that under the assumed economic recession scenario, the common equity tier 1 (CET1) capital adequacy ratios of all 22 banks tested were higher than the minimum requirements. The analyst believes that the test results may prompt a reallocation of funds to regional banks, as investors have begun to factor in the possibility of lower CET1 capital requirements. The second catalyst is the US June non-farm payroll report, which will be released on July 3. The analyst pointed out, "If there are significant cracks in the labor market, it could reignite concerns about credit quality - although currently most investors have little concern about this." He mentioned the recent trend of increasing initial and continuing jobless claims. The third catalyst is related to the 90-day tariff suspension period, which will expire on July 9. The analyst wrote in the report, "This event could be a positive or negative catalyst. If a free trade agreement similar to the UK's can be reached with major trading partners, it will help investors believe that the 'tariff turbulence peak' is in the past. This may be beneficial for the development of CKH HOLDINGS medium-sized market investment banking business."