Among regional banks, First Republic rallied by 13% on Monday

On Monday, regional bank stocks rose strongly as news that the recent pressure on the industry may be easing and that further government support may be forthcoming cheered investors.

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Shares of First Republic surged by 13%, whittling away at the troubled firm’s severe losses in March. Western Alliance gained 5.5%, while PacWest Bancorp shares increased by roughly 2.5%.

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More than 1% was added to the SPDR S&P Regional Bank ETF (KRE).

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The Monday actions come in response to a number of indications that the US regional bank crisis may be abating.

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According to a Saturday report by Trade Algo, American officials are thinking about increasing federal programs that give banks extra liquidity, in part to support First Republic as it looks for a buyer.

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Also, Trade Algo posted that deposits coming into big banks from smaller regionals have significantly decreased.

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The collapse of SVB on March 10 and Signature Bank 2 days later as a result of substantial deposit outflows has put regional bank stocks under a lot of pressure this month. Federal regulators declared that deposits at those two banks would've been fully reimbursed and that they would also increase liquidity for other banks.

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First Republic, whose business model was comparable to SVB's, has drawn particular attention. First Republic received $30 billion in deposits from eleven bigger banks as a sign of support for the smaller company.

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The increases on Monday come as a result of the news that First Citizens BancShares has agreed to purchase a significant portion of SVB, such as its deposits and branches. First Citizens' stock increased by more than 40%.

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New York Community Bancorp has already acquired several of the lesser Signature Banks. Even though Credit Suisse's problems seem to be mostly linked to the U.S. regionals, Swiss officials facilitated the sale of Credit Suisse to UBS in Europe.