AGL 39.50 Decreased By ▼ -0.50 (-1.25%)
AIRLINK 129.05 Decreased By ▼ -0.01 (-0.01%)
BOP 6.76 Increased By ▲ 0.01 (0.15%)
CNERGY 4.68 Increased By ▲ 0.19 (4.23%)
DCL 8.54 Decreased By ▼ -0.01 (-0.12%)
DFML 41.24 Increased By ▲ 0.42 (1.03%)
DGKC 81.40 Increased By ▲ 0.44 (0.54%)
FCCL 32.91 Increased By ▲ 0.14 (0.43%)
FFBL 74.97 Increased By ▲ 0.54 (0.73%)
FFL 11.85 Increased By ▲ 0.11 (0.94%)
HUBC 110.10 Increased By ▲ 0.52 (0.47%)
HUMNL 14.34 Increased By ▲ 0.59 (4.29%)
KEL 5.27 Decreased By ▼ -0.04 (-0.75%)
KOSM 7.66 Decreased By ▼ -0.06 (-0.78%)
MLCF 38.50 Decreased By ▼ -0.10 (-0.26%)
NBP 65.13 Increased By ▲ 1.62 (2.55%)
OGDC 193.90 Decreased By ▼ -0.79 (-0.41%)
PAEL 25.85 Increased By ▲ 0.14 (0.54%)
PIBTL 7.38 Decreased By ▼ -0.01 (-0.14%)
PPL 153.15 Decreased By ▼ -2.30 (-1.48%)
PRL 25.55 Decreased By ▼ -0.24 (-0.93%)
PTC 17.60 Increased By ▲ 0.10 (0.57%)
SEARL 79.59 Increased By ▲ 0.94 (1.2%)
TELE 7.81 Decreased By ▼ -0.05 (-0.64%)
TOMCL 33.70 Decreased By ▼ -0.03 (-0.09%)
TPLP 8.54 Increased By ▲ 0.14 (1.67%)
TREET 16.16 Decreased By ▼ -0.11 (-0.68%)
TRG 57.88 Decreased By ▼ -0.34 (-0.58%)
UNITY 27.68 Increased By ▲ 0.19 (0.69%)
WTL 1.39 No Change ▼ 0.00 (0%)
BR100 10,531 Increased By 86.2 (0.83%)
BR30 31,106 Decreased By -83 (-0.27%)
KSE100 98,971 Increased By 1173.2 (1.2%)
KSE30 30,916 Increased By 435.1 (1.43%)

Shares of U.S. regional banks rose in premarket trading on Tuesday after suffering double-digit losses over the past few days following the biggest bank collapse since the 2008 global financial crisis.

The collapse of Silicon Valley Bank and Signature Bank sent shockwaves through global markets, particularly hammering banking sector shares, despite assurances from U.S. President Joe Biden and other policymakers.

First Republic Bank rose 21% to $37.50, a day after hitting a record low of $17.53. Rating’s agency Moody’s said it was reviewing the U.S. regional bank for a downgrade.

Western Alliance Bancorp, Citizens Financial Group, KeyCorp, Comerica Inc, Fifth Third Bancorp, Truist Financial Corp and Zions Bancorp jumped between 10% and 30%.

The S&P 1500 regional banks sub-industry index has tumbled 20% in the past three sessions.

Some industry executives and advisers believe small lenders could be forced to seek saviors if a rout in their stocks does not let up.

First Republic dives as fresh financing fails to soothe deposit outflow fears

“In order to minimize the risk of deposit outflows, many smaller banks may be forced to further increase deposit rates (and) this is not good for any bank’s profitability,” said UBS Global Wealth Management Chief Investment Officer Mark Haefele in a note.

“Though those banks with higher capital ratios, smaller pools of securities relative to total assets, strong brands, and diversified funding sources should be better able to weather the current market dynamics.”

A wave of customers have applied to shift their accounts to large U.S. banks such as JPMorgan Chase & Co and Citigroup Inc from smaller lenders after the collapse of Silicon Valley Bank, the Financial Times reported.

Comments

Comments are closed.