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Regional Bank Stocks Stabilize as Contagion Fears Ease, for Now

  • Steady deposit levels ease worries about industry collapse
  • ETF tracking group lost more than one-fifth of value in March
A Pacific Western Bank branch in Encino, California.

A Pacific Western Bank branch in Encino, California.

Photographer: Morgan Lieberman/Bloomberg

For US policymakers who have struggled to contain the month-old banking crisis, there are encouraging signs that investor confidence in regional banks may be starting to recover, at least for now. 

Even as First Republic Bank — one of the biggest regional banks, known for offerings aimed at wealthy clients — has sunk deeper into crisis this week, falling as much as 49% on one-day alone — shares of many of its peers, including names like PacWest Bancorp and UMB Financial Corp., have mostly held steady. This contrasts sharply with the way regional banks tumbled across the board last month as Silicon Valley Bank and Signature Bank collapsed.