Banks can be complex businesses, but the industry's basics are pretty simple to understand. A swift rise in interest rates has been a notable headwind, pushing down share prices across the sector.

Two stocks that are getting beaten down but that are still worth a very close look are Toronto-Dominion Bank (NYSE: TD), or TD Bank, and Bank of Nova Scotia (NYSE: BNS), or Scotiabank. Here's why.

Canada, the country from which TD Bank and Scotiabank both hail, has a highly regulated bank sector. This has resulted in the largest banks having entrenched industry positions. Moreover, industry regulators have a keen focus on safety, so Canadian banks tend to be risk-averse. The conservative nature permeates their entire business, regardless of where the companies are operating.

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Source Fool.com