After last week’s declines, European bank equities increased for the first time in almost a week on Monday as a buyer materialised for a sizable portion of Silicon Valley Bank’s deposits and loans, easing some of the sector’s worry.
The pan-European STOXX 600 (.STOXX) index increased 1.1% while the STOXX banks index (.SX7P) increased 2.3% in early trading, outperforming the wider stock market by a significant margin.
First Citizens Bank’s Shares (FCNCA.O) bought all the loans and deposits of SVB and gave the Federal Deposit Insurance Corp equity appreciation rights in its stock worth as much as $500m in return, the FDIC said in a statement. Frankfurt-listed shares in First Citizens rose 9.4%.
The Frankfurt-listed shares of several mid-tier US lenders also rose sharply on Monday.
