Regional banks rebound for a second day as PacWest cuts dividend, says business 'fundamentally sound'

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Regional banks rebound for a second day as PacWest cuts dividend, says business 'fundamentally sound'
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PacWest Bankcorp led a relief rally in regional banks on Monday, after the struggling lender slashed dividend to build capital amid the banking crisis.

"Given current economic uncertainty, recent volatility in the banking sector and potential changes in regulatory capital requirements, we view reducing the dividend as a prudent step to accelerate our plans to build capital," Taylor said in a release.last week, resulting in the third failure of an American bank since March. A rapid increase in interest rates has weighed on banks with long-term bond assets, causing a deposit flight.

confirming it was in talks with several possible partners and investors. The California-based bank said it had not experienced "out-of-the-ordinary deposit flows" after First Republic's collapse. Shares of PacWest are down more than 40% in May and 75% for the year through Friday. The SPDR Regional Banking ETF is off by 10% in May and 35% for the year through Friday.

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