The regional bank risk that had increased due to the sale of the U.S. Silicon Valley Bank (SVB) appears to be calming down, leading domestic bank stocks to rise in unison.
As of 10:13 a.m. on the 28th, KB Financial Group is trading at 48,200 won, up 3.10% (1,450 won) from the previous day. Other stocks such as Shinhan Financial Group +3.44%, Hana Financial Group +2.49%, Woori Financial Group +1.91%, JB Financial Group +3.19%, DGB Financial Group +3.23%, and BNK Financial Group +2.26% are also on the rise.
The reason domestic bank stocks are rising together is due to the easing of concerns over the U.S. banking crisis. The swift resolution of the SVB bankruptcy has had a positive effect on both the U.S. and domestic stock markets.
On the 27th (local time), the U.S. Federal Deposit Insurance Corporation (FDIC) announced the sale of SVB, which was nationalized due to a bank run, to First Citizens Bank. Along with this, news emerged that U.S. financial authorities are considering additional liquidity support for First Republic Bank, prompting a rally in bank stocks on the U.S. stock market.
First Citizens closed up 53.74% in a single day. The stocks of regional banks First Republic and PacWest Bank also rose 11.81% and 3.46%, respectively, compared to the previous day. Germany's Deutsche Bank also rebounded 4.71% as investor sentiment recovered.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
