The rating institutions, "Moody's" and "Standard & Poor's", considered on Tuesday that the turmoil in the US banking sector in the wake of the bankruptcy of the Silicon Valley bank should have a limited impact on European banks that follow a different regulation.

Financial markets were shaken earlier this week after the collapse of the Silicon Valley and Signature banks, which forced the US federal authorities to take measures to prevent the spread of bankruptcy contagion.

Moody's, which lowered its view of the US banking sector from stable to negative, said in a report that the structure of European banks limits their exposure to collapses in the US banking sector, as they deposit a larger share of their reserves with central banks.

The US-based institution added that debt securities constitute a smaller portion of the balance sheets of European banks compared to US financial institutions.

The report pointed to "a fundamental difference between the European and American systems that limit the effects across the two sides of the Atlantic, which is that European banks' holdings of bonds are less and their deposits are more stable and grew at a slower rate."

The institution stated that the Bank of England and the European Central Bank have developed better ways to obtain liquidity in the event of similar unrest.

Standard & Poor's credit ratings agency said the European banks it tracks and interest rates do not have the same economic model or funding sources as US banks, adding that it is unlikely to be exposed to much directly.

EU Economic Commissioner Paolo Gentiloni, French Finance Minister Bruno Le Maire and German Chancellor Olaf Scholz were among the European figures who reassured the markets of the continent's vulnerability to financial turmoil.