Shares of First Republic Bank rose 25% in premarket trading.

(Reuters)

[Financial Channel/Comprehensive Report] Bank stocks in the U.S. region rose sharply in pre-market trading on Monday, mainly because investors were encouraged by media reports that the pressure on the banking industry is easing recently and that the government may be providing more support.

Wall Street's main indexes opened higher on Monday after a deal to buy deposits and loans from a failed Silicon Valley bank eased nervousness about strains in the banking sector.

Monday's gains also came after First Citizens BancShares announced it had agreed to buy a large chunk of the Silicon Valley bank, including its deposits and branches.

Shares of First Citizens Bank rose 40% in premarket trading.

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Elsewhere, shares of First Republic Bank rose 25% in pre-market trading, recovering from a struggle after steep losses in March.

Regional banks Western Alliance Bancorp and PacWest Bancorp also rose 5.9 percent and 9.8 percent, respectively, while the SPDR S&P Regional Banks ETF (KRE) gained more than 3 percent.

Shares of major U.S. banks JPMorgan, Citigroup and Bank of America rose between 1.5 percent and 2.1 percent.

U.S. officials are considering expanding a federal program that provides liquidity to banks, in part to help First Republic find a buyer.

Parts of the smaller Signature Bank have been acquired by New York Community Bancorp.

In Europe, Swiss officials brokered the sale of Credit Suisse to UBS, even though Credit Suisse's problems appear to be largely irrelevant to the U.S. regional bank.

European bank stocks also rebounded from last week's losses.

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