LAS VEGAS, March 28 (Reuters) – Mid-sized U.S. lenders are getting creative as they try to hang onto customer deposits after two bank failures rattled consumers and spurred a $119 billion exodus from small institutions in recent weeks.

Industry executives discussed strategies to bolster trust in their institutions at an annual meeting of the Consumer Bankers Association conference on Monday in Las Vegas.

Paying higher rates on deposits is the most common way to make them stick, executives said.

Full coverage: REUTERS

Oil Prices Soften; Banking Crisis And Chinese Demand In Focus

March 28 (Reuters) – Crude prices retreated on Tuesday after rallying the previous session, with markets focused on developments in the banking crisis and indications of strengthening demand in China.

Prices eased after rising at the fastest pace in more than four months on Monday. West Texas Intermediate U.S. crude was down 1 cent, or 0.01%, to $72.80 a barrel. Brent crude futures fell 19 cents to $77.93 a barrel by 0651 GMT.

Full coverage: REUTERS

BP, ADOC Offer To Buy 50% Of Israel’s NewMed Energy

LONDON, March 28 (Reuters) – BP (BP.L) and Abu Dhabi’s state oil giant on Tuesday offered to acquire 50% of Israeli offshore natural gas producer NewMed Energy (NWMDp.TA) for around $2 billion, making their entry into Israel’s growing energy sector.

The offer would involve acquiring NewMed’s free floating shares and taking the company private. BP shares gained 2% by 0810 GMT while NewMed shares were up around 30%.

Abu Dhabi National Oil Co (ADNOC) and BP said they intend to form a new joint venture as part of the deal that will be “focused on gas development in international areas of mutual interest including the East Mediterranean.”

Full coverage: REUTERS

Dollar Falls Again As Banking Sector Fears Ease, Yen Climbs

TOKYO/LONDON, March 28 (Reuters) – The U.S. dollar fell on Tuesday as receding fears of a full-blown banking crisis slowed demand for so-called safe haven assets.

But the yen rallied, despite traditionally also being a safe haven, with analysts pointing to a pick-up in flows ahead of the end of Japan’s fiscal year on Friday.

The dollar fell as low as 130.51 yen, and was last off 0.29% at 131.2 as the Japanese currency rose. That undid some of the dollar’s 0.64% jump against the yen in the previous session, which tracked a large rise U.S. government bond yields.

Full coverage: REUTERS

Morning Bid: Investors Switch To Bank Fundamentals

A look at the day ahead in European and global markets from Anshuman Daga.

Turbulence in global markets is gradually giving way to stability.

A day after regional U.S. lender First Citizens BancShares moved to scoop up the assets of failed Silicon Valley Bank, brave investors can probably begin to ask, “Is the worst over?”

A strong show of confidence is coming from U.S. authorities as bank regulators say the system is sound but rules need review.

Full coverage: REUTERS