On Monday, European bank stocks rose for the first time in nearly a week, reversing last week’s losses, after a buyer emerged for a significant portion of Silicon Valley Bank’s deposits and loans, easing some of the sector’s anxiety.
After falling 3.8% on Friday, the STOXX banks index (.SX7P) rose 2.3% in early trading, outperforming the wider stock market, with the pan-European STOXX 600 (.STOXX) index rising 1.1%.
First Citizens BancShares Shares (FCNCA.O) purchased all of SVB’s loans and deposits and gave the Federal Deposit Insurance Corp equity appreciation rights in its stock valued up to $500 million in exchange, according to a statement from the FDIC. First Citizens’ Frankfurt-listed shares increased 9.4%.
On Monday, the Frankfurt-listed shares of several mid-tier US lenders climbed sharply.