Bank stocks rose slightly Monday, but concerns about loan quality caused the sector to underperform the market, which benefited from signs that credit markets are beginning to reopen.

The KBW Bank Index inched up 0.54%. The Dow Jones industrial average jumped 4.67%, and the Standard & Poor's 500 gained 4.77%. Among the signs of a credit thaw: The three-month Treasury bill yield ended the day above 1% for the first time since mid-September, and the London interbank offered rate for three-month dollar loans fell 36 basis points, to 4.06%.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.