Bank of America (BAC): rates and credit exposure
How global shocks reach BAC
Bank of America is filed under Banking, and 2 of the 6 shock types GLOBLVIEW tracks reach it through that sector (rates/fed, credit stress). Stories centered on the United States also register as geographic exposure, because Bank of America is registered in the United States.
| Shock | Channel | Tendency for BAC | Why |
|---|---|---|---|
| RATES/FED | Price of money | ▲ tends to benefit | Higher rates tend to help banking when loans reprice faster than deposits, which widens net interest margin. |
| CREDIT STRESS | Risk appetite | ▼ tends to be pressured | Credit stress tends to hit banking directly, through funding costs, defaults, or a general pullback in lending. |
Direction is a tendency across cycles, not a forecast. Sector mapping uses the Finnhub industry classification; geography uses country of registration, not revenue by region.
What actually moves Bank of America
Rates are the main cash channel, and the bank's own table is not symmetric. An immediate 100 basis point parallel rise would add about $0.7 billion to banking book net interest income. A 100 basis point drop would cut it by about $2.0 billion. Net interest income was $60.1 billion of $113.1 billion of revenue. Deposits, not bonds, fund the balance sheet: $2.02 trillion of deposits against $317.8 billion of long-term debt.
Trade reaches Bank of America through borrowers and markets, not through a factory. The filing says significant tariff increases produced market volatility, and that further increases, including in US and China trade, could slow the economy and raise inflation. The United States was 86% of revenue. Oil and conflict show up mainly in trading results and in corporate credit, not as input costs.
The less obvious funding fact is uninsured deposits. About $857.9 billion, roughly 42% of deposits, was uninsured. In a credit scare that is the balance to watch, alongside cards and commercial loans. The filing also names stablecoins and other nonbank digital money as a reason deposits could leave. That is a funding competitor, not a rate competitor.
Drawn from the annual filing cited below. Not a forecast and not investment advice.
What Bank of America sells and where it earns
Bank of America is a US deposit-taking bank with a large brokerage and investment bank attached. Revenue net of interest expense was $113.1 billion in 2025, and $60.1 billion of that was net interest income, so lending and deposit spreads still drive the business more than fees do. The bank says it serves about 69 million consumer and small business clients through roughly 3,600 retail financial centers, 15,000 ATMs and digital platforms with about 49 million active users. Consumer Banking, the largest segment, takes deposits and makes card, mortgage and auto loans. Global Wealth & Investment Management consists of Merrill Wealth Management and the Bank of America Private Bank. Global Banking lends to and advises companies and earns investment banking fees. Global Markets handles sales and trading for institutional clients. The bank operates in more than 35 countries, but the US produced 86% of 2025 revenue. Total assets were $3.41 trillion and loans and leases averaged $1.14 trillion during 2025.
Customer concentration
The 10-K does not identify any single client as material to revenue. Of $2.02 trillion in deposits at December 31, 2025, an estimated $857.9 billion was uninsured ($723.0 billion in the US and $134.9 billion outside it), or about 42% of the total.
Debt
Deposits of $2.02 trillion were about 65% of total liabilities at December 31, 2025, so the bank is mainly deposit funded. Long-term debt was $317.8 billion, about 10% of liabilities, up from $283.3 billion a year earlier. The filing estimates that an immediate 100bp parallel rise in rates would add about $0.7 billion to banking book net interest income, while a 100bp drop would cut it by about $2.0 billion.
Risk factors that moved this year
- Tariffs got their own discussion. The FY2025 filing says significant tariff increases in the past year generated heightened market volatility, and that further increases, including in US and China trade, could slow the economy and raise inflation.
- The deposit risk factor now names the further development and acceptance of nonbank digital asset ecosystems, such as stablecoins, as a reason deposits could leave the bank.
- New references to Executive Branch Actions, including on fair access to banking products and services, were added to the regulatory risk discussion, along with the risk of asset prices running ahead of fundamentals.
How this changes the exposure read
Rates/Fed is the dominant channel, and the filing's numbers show the bank loses more from falling rates than it gains from rising ones. Credit stress arrives through consumer cards and commercial loans, and the uninsured deposit base is the place to watch in a funding scare. Trade/tariff policy is now a named risk factor, but it hits through borrowers and market volatility rather than the bank's own costs. Oil shocks and conflict risk reach it mainly through trading revenue and corporate borrowers. Chip/export rules are not a meaningful channel.
Source: Bank of America 10-K, FY2025. Checked 2026-10-05. Figures are from the filing and may differ from the live stats above.
What is moving it now
Key stats
Recent filings
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Quotes may be delayed. Information only, not investment advice.