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Regional Bank Stocks Bounce for Strongest Rally in Two Years

  • Western Alliance saying deposits grew boosted stocks Wednesday
  • But the rally did little to alleviate the sector’s pain
Western Alliance Bank headquarters in Phoenix, Arizona.

Western Alliance Bank headquarters in Phoenix, Arizona.

Photographer: Caitlin O'Hara/Bloomberg
Updated on

Shares of US regional banks rallied after Western Alliance Bancorp said deposits had grown by more than $2 billion since the quarter’s end, easing worries about the health of US regional lenders.

The KBW Regional Banking Index soared by 7.3% for its best day since January 2021. Western Alliance rose 10%, while PacWest Bancorp jumped by 22%. The sector had been under pressure since March, when a series of firms including Silicon Valley Bank collapsed.