Cautious calm returns to bank stocks as focus shifts to regulation

SINGAPORE: Battered Japanese bank stocks clawed back some of their heavy losses on Wednesday, as regulators and financial executives hosed down investor concerns about contagion after the collapse of Silicon Valley Bank (SVB).

Markets and financial authorities remained on edge, however, with U.S. deposit holders seeking the safety of larger banks amid growing worries about the health of smaller institutions and the prospect of more failures in the sector.