PUERTO RICO STOCKS COMMODITIES CURRENCY

“While earnings are under material near-term pressure, we think the stabilization of deposit pressures should allay investor concerns of severe deposit outflows,” analysts at Truist Securities said.

Regional banks have been trying to assure customers that their deposits are secure after recent bank runs following the failures of Silicon Valley Bank and Signature Bank last month.

The collapses triggered the biggest banking crisis since

2008 and stoked heavy volatility in the sector, worsening existing jitters of an imminent recession.

Policymakers have sought to emphasize that the current crisis is different from the last one as lenders are now bettercapitalized, but Federal Reserve data showed that banks sought record amounts of emergency liquidity in mid-March.

Analysts at RBC Capital Markets wrote in a note that while Western Alliance has reported a large decrease in deposits it believes that “this is ultimately an acceptable and manageable outcome for the company.”

The banking sector is due to kick off first-quarter reporting season next week, with investors expected to closely watch the balance sheets for signs of further stress and liquidity crunch.