European bank stocks rose on Monday after a buyer emerged for the deposits and loans of US lender Silicon Valley Bank, Reuters reported.

Deutsche Bank joined the uplift in European bank stocks, which fell almost 4% on Friday, after a sharp jump in the largest German lender’s credit default swaps (CDS), a type of insurance for bondholders, exacerbated worries around the health of the European banking sector.

On Monday, First Citizens BancShares said it would come to the rescue of failed SVB when it announced it would buy all its loans and deposits. Reuters said the buyer would assume SVB assets of $110 billion, deposits of $56 billion and loans of $72 billion.

Earlier this March, tech-lender SVB collapsed triggering a US mid-tier banking shock.

A “relative calm returned amid the choppy seas of the banking crisis as a buyer was found for Silicon Valley Bank’s assets,” said Neil Wilson, chief market analyst at told Reuters.

The STOXX banks index was up 1.4% at 1150 GMT after opening 2.3% higher, supporting the pan European STOXX 600 index, which rose 1.1%.

STOXX 600 Index (five-day view)

Deutsche Bank shares rallied more than 5%, after an 8.5% fall on Friday.

“It looks like Friday’s panic over Deutsche Bank was a bit misplaced. But the steady drain of deposits from banks means a slow motion problem is in the making, and could result in a contraction in lending that brings on a recession,” Chris Beauchamp, chief market analyst at IG Group, told Reuters.

“This is the bigger risk than the hunt last week for the next domino to fall in the global banking system,” he added.