A buyer for Silicon Valley Bank's deposits and loans helped shares in European lenders mount a partial recovery on Monday, after the sector was hammered last week by worries of systemic bank stress and a credit crunch.
FILE PHOTO: SVB logo and decreasing stock graph are seen in this illustration taken March 19, 2023. REUTERS/Dado Ruvic/Illustration/U.S. authorities mull extending bank funding support - BloombergThe sale of failed Silicon Valley Bank to a regional U.S. peer helped stabilise shares in European lenders on Monday, after the sector was hammered last week by worries of systemic bank stress and a looming credit crunch.
First Citizens BancShares Inc FCNCA.O has bought all the loans and deposits of SVB and gave the Federal Deposit Insurance Corp equity rights in its stock worth as much as $500 million in return, FDIC said in a statement. "You sweep Silicon Valley off to another buyer, which is good," said IG Markets analyst Tony Sycamore in Sydney.
The Stoxx index of European bank shares .SX7P is still down more than 17% and the U.S. KBW regional bank index .KRX has lost 20%, with investors on edge about what's next. In a credit crunch, banks restrict the amount they are willing to lend to consumers and businesses due to heightened concerns about their customers' ability to pay back their loans.
On the upside, business morale in Germany, Europe's largest economy, unexpectedly rose in March despite the banking turmoil.
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First Citizens Bank to buy Silicon Valley Bank deposits and loansFirst Citizens Bank agreed to buy Silicon Valley Bank's deposits and loans, the U.S. Federal Deposit Insurance Corporation said Monday.
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FDIC says First Citizens Bank has reached deal to purchase Silicon Valley BankThe Federal Deposit Insurance Corporation said the First–Citizens Bank & Trust Company has agreed to purchase Silicon Valley Bank and will insure all depositors up to federal limits.
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First Citizens Bank to buy Silicon Valley Bank deposits and loansBREAKING: First Citizens Bank agreed to buy Silicon Valley Bank’s deposits and loans, the U.S. Federal Deposit Insurance Corporation said Monday .
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FDIC announces First-Citizens Bank & Trust Company to purchase assets of Silicon Valley Bank | CNN Business
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