The Fed is raising rates as fast as it can, and the Treasury yield curve is flat or inverted. Is this a bad scenario for US banks? Not right now, since the rates banks pay on deposits have risen much less than rates on Treasury bills or the fed funds rate, as is often the case. And wider credit spreads on corporate loans have also helped improve lending margins. Our stock rankings show higher readings for the Financials sector, helped by strong earnings estimate revisions, particularly in mid- and smaller-cap banks and thrifts. Readings above zero on the chart below indicate analysts raising estimates more in Banks than in the overall US market, and recent readings have been far above average.