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Are Bank Stocks Safe? The Pros and Cons

Bank stocks can be safe long-term investments, but there's a lot more to the story.

By Matthew Frankel, CFPUpdated Jun 27, 2025 at 4:24 PM | Fact-checked by Frank Bass

Key Points

  • Bank stocks face risks like cyclicality, loan losses, and interest rate fluctuations.
  • Higher regulation and diverse banking services can mitigate these risks.
  • Quality banks with strong risk management are favorable for long-term investment.

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