SVB deal soothes broader markets, but stress haunts banks

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SVB deal soothes broader markets, but stress haunts banks
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A buyer for Silicon Valley Bank's deposits and loans helped cast an uneasy calm over fragile markets, which have been roiled by worries of a credit crunch and systemic bank stress

There are also hopes for extra support for bank funding, after Bloomberg News reported U.S. authorities were in early stage deliberation about expanding emergency lending facilities.

The deal has given markets some respite as it sealed the first weekend in several weeks that did not bring news of fresh banking collapses, rescues or emergency help from authorities. Last week ended with indicators of financial market stress flashing and Germany's biggest lender Deutsche Bank in the crosshairs, with its shares down 8.5% on Friday and the cost of insuring its bonds against default up sharply.

"It's clearly not over," Australia and New Zealand Banking Group Chief Executive Shayne Elliott said in an interview posted to the bank's website, where he said the turmoil has the potential to escalate into a bigger financial crisis.

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