There’s a palpable feeling of optimism in the air. The dark clouds that once swirled around the global economy have begun to dissipate, allowing a ray of sunshine to creep through. As more countries see their COVID-19 vaccination rates climb, the recovery should gather even more steam. Amid this backdrop, our local banks, namely DBS Group (SGX: D05), United Overseas Bank Ltd (SGX: U11), or UOB, and OCBC Ltd (SGX: O39), have seen their share prices rise on this optimism. All three banks are edging close to their 52-week highs, with DBS at S$31.37, UOB at S$26.88, and OCBC hitting the S$12 mark. Although sentiment remains ebullient, investors may be wondering if the banks’ share prices have run ahead of their fundamentals. Could the pandemic still throw curveballs at these lenders? Or are the banks worthy of purchase even at current valuations? Rising interest rates Both the US and UK...