By Scott Kanowsky 

-- Shares in Deutsche Bank AG NA O.N. (ETR:) are up Monday, rising to near the top of the regional Europe , as the German lender rebounded from steep losses in the prior session.

Analysts backed Deutsche's strength despite a 9% drop on Friday that came after the cost of insuring its debt against default surged. Fears over the health of the broader financial services industry have been exacerbated as well following the failures of Silicon Valley Bank and Signature Bank and the forced takeover of Group AG (SIX:) by rival UBS Group AG (SIX:).

But the market's concerns around Deutsche are "starting to be irrational," argued analysts at Kepler, who also maintained their buy rating of the stock. Analysts at Citi echoed the sentiment, adding that worries around Deutsche's exposure to U.S. commercial real estate loans, which have been strained by an uptick in borrowing costs and slipping property valuations, are "manageable."

On Friday, German chancellor Olaf Scholz responded to questions that Deutsche could see its own version of the turmoil surrounding Credit Suisse, saying the bank is "fundamentally modernized" and "very profitable."

This morning's gains at Deutsche helped lift other major European bank stocks that have faced heavy volatility in recent weeks, with German peer O.N. (ETR:) and (BME:) in Spain both trading in the green. The Europe index, a collection of some of the region's biggest lenders, also moved up by more than 1.3%.