If Rising Rates Hurts And Causes A Recession, Why Are Bank Stocks Not Falling In Anticipation Of Rising NPL?

The fear is that with rising interest rates globally, borrowers are hurting with higher interest payment, leading to a surge in defaults. Blackstone’s CMBS comes to mind. However, we note that bank stocks are rallying. Seems like markets are not expecting a surge in NPLs. Economy is fine, especially in Europe.