Financial markets in France and Germany also rose 0.6 The main Japanese stock index Nikkei closed up percent 1.2percent.

Departments of the eleven banks that announced support said the move reflected “their confidence in the country’s banking system”. As U.S. Bank officials said, the move is “very welcome and indicates the strength of the banking system.”

After the collapse of two US banks, Silicon Valley Bank and Signature Bank, last week, investors worried that other banks could also collapse.

US banking regulators intervened over the weekend to ensure Silicon Valley and Signature Bank customers got their money.

Shares of San Francisco-based First Republic Bank have plunged nearly 70 percent in the past week, amid fears that it could be the next bank to fail as customers rush to withdraw their deposits.

However, the bailout of 11 banks, led by JP Morgan and Citigroup, lifted stock markets, with First Republic shares rising more than 20 percent at one point. However, there are signs that all concerns are not yet allayed.

Shares of First Republic Bank fell 20 percent in after-hours trading after the bank said it would freeze its dividend income and payments to shareholders “during this period of uncertainty.”

Souveda Ramachandran, director of investments at GAM Investments, said the authorities are working proactively. He told the BBC: “There’s really little we’re trying to do to prevent specific problems with isolated banks from turning into systemic problems, so it’s very different from what happened in 2008 and it was widespread across the banking sector.”

“The banking system in general is safe and sound,” US Treasury Secretary Janet Yellen said on Thursday, while European Central Bank Vice President Luis de Guintos said the banking sector was “strong”.

Europe has not been spared from the turmoil in the banking sector, with the impasse facing Credit Suisse, the largest Swiss bank.

Shares of Credit Suisse fell earlier this week on concerns about the bank’s future. The Swiss National Bank announced on Wednesday that it had provided Credit Suisse with up to £44 billion in emergency funding.

Shares of Credit Suisse opened higher on Friday, but then fell. The bank’s shares have fallen about 22 percent since the start of the week.

Central banks around the world have dramatically raised borrowing costs over the past year in an effort to curb overall inflation, or the pace of inflation.

The moves affected the value of large bonds bought by banks when interest rates were low, contributing to Silicon Valley’s decline and raising questions about whether other companies are facing a similar situation.

Geoffrey Cleveland, chief economist at US asset management firm Biden & Regal, told the BBC that other banks may have run into that problem. And, “if central banks continue to raise interest rates, there may be other impacts.” Interest. Historically when this happens we see weakness and we see problems in the financial system.”

Ahead of the turmoil in the banking sector, both the US Federal Reserve and the Bank of England were expected to raise interest rates further at their meetings next week. However, some have speculated that these interest rate hikes may or may not be reversed due to recent events. On Thursday, the European Central Bank announced another interest rate hike from 2.5 percent to 3 percent.

Looking more broadly at the stability of financial markets, Ramachandran, investment director at GAM Investments, said, “For the ECB, their main battle right now is inflation.” This will be covered by the particular bank.