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Cramer explains why this is the perfect environment for bank stocks to roar higher

Financial stocks took a nosedive on Tuesday, but that didn't scare off Jim Cramer from the group.

"I am committed to this group and after some profit-taking, I think it runs anew," the "Mad Money" host said.

On Friday, three of the largest banks in the U.S. — Bank of America, JPMorgan and Wells Fargo — issued statements that were incredibly positive.

Many investors believe that the recent rally in financials is based on a mere post-election high, but Cramer disagreed. Banks have been waiting for this moment, Cramer said, and they have been prepared to strike at the right time.





Pedestrians pass in front of a Bank of America branch in New York City.
Scott Mlyn | CNBC
Pedestrians pass in front of a Bank of America branch in New York City.
"It is the ideal backdrop for the bank stocks to go higher." -Jim Cramer

All three banks took advantage of the Great Recession to increase national market share, as JPMorgan controls 13 percent of the nation's deposits, followed by Bank of America at 9.9 percent and Wells Fargo at 9.7 percent.

Wells Fargo is the country's largest lender with 12 percent of the market. JPMorgan has 6.3 percent and Bank of America has 4.2 percent. Needless to say, the three banks all have a solid read on what is happening in the industry.

All three confirmed there are more loans, more spending and fewer customers going broke on their conference calls. They all painted a very strong picture that things have picked up after the election.

"I cannot stress how important all of this is," Cramer said.

That means the banks will be ready when more rate hikes come along, and will have a large amount of cash ready to lend.

"It is the ideal backdrop for the bank stocks to go higher," Cramer said.


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