Stock markets have risen after a group of US banking giants stepped in to rescue a smaller regional lender, which had been seen as at risk of failure.

According to reports from the BBC, investors’ worries over a crisis in the banking sector were eased after 11 US banks injected $30-billion into First Republic.

Recent bank collapses in the US have raised fears over the health of the banking system.

The UK’s FTSE 100 share index was up 1% in early trade.

Among the UK banks, shares in Lloyds and Barclays were up 1.3% higher.

The BBC is reporting that stock markets in France and Germany were up by about 0.6%, and earlier, Japan’s Nikkei index had closed 1.2% higher.