(For a Reuters live blog on U.S., UK and European stock
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        * 
      ECB supervisors see no contagion for euro zone banks
    

        * 
      Euro zone inflation eases in Feb; core prices pick up
    

        * 
      UK's Ofcom delays BT fibre pricing decision, shares tank
    

        * 
      Banks lose 2.6%, record 11.5% weekly loss
    

        * 
      STOXX 600 drops 1.3%, logs 4% weekly loss
    

  
 (Updates prices to close; adds details, comments)
    By Ankika Biswas and Bansari Mayur Kamdar
       March 17 (Reuters) - European shares erased their early
gains on Friday and logged their steepest weekly drop in five
months as supportive measures from regulators across the United
States and Europe failed to allay fears over a brewing global
banking crisis.
    The pan-European STOXX 600  .STOXX  closed the day 1.3%
lower, dragged by bank  .SX7P , insurance  .SXIP  and financial
services stocks  .SXFP .
    The bank index lost 2.6%, with HSBC  HSBA.L , BNP Paribas
 BNPP.PA , Allianz SE  ALVG.DE  and UBS Group  UBSG.S  losing
between 1% and 3%. 
    A $30 billion lifeline by large U.S. banks for embattled
lender First Republic Bank  FRC.N , less than a day after
battered Credit Suisse  CSGN.S  clinched a mega central bank
loan, had boosted the bank index by as much as 2.2% earlier in
the day.
        Later in the day, SVB Financial filed for a 
    court-supervised reorganization
     under Chapter 11 bankruptcy protection to seek buyers for
its assets.
  
        "Central banks have done the right things in putting an
effective backstop in place... it's just going to take some
time," said Jeffrey Kleintop, chief global investment strategist
at Charles Schwab & Co.
  
        
    Euro zone inflation
     eased a touch in February, figures showed on Friday, but
underlying price growth continued to accelerate on a surge in
services costs.
  
        "The core CPI is still climbing, making it unclear when
the hiking cycle will end... there are some concerns about what
will these global central banks do," Kleintop added.
  
        The benchmark STOXX 600 lost nearly 4% this week, with
bank stocks bleeding 11.5%, after the U.S. and European lenders'
meltdown left investors panicking about the financial sector's
health.
  
    Credit Suisse, too, reversed early gains and dropped 8.0%,
following a 19% jump in the previous session.
    Losing nearly 2% each on Friday, the lender-heavy indexes of
Spain  .IBEX  and Italy  .FTMIB  logged their worst weekly
losses in over a year and nine months, respectively.
    The STOXX 600 index had closed Thursday 1.2% higher, after
some back and forth, as the lifeline to Credit Suisse offset
concerns around the European Central Bank's big 50-basis point
(bp) interest rate hike.  .EU 
    Reuters reported that ECB supervisors see no contagion for
euro zone banks from the turmoil.
    However, investors held tight to bets that banking jitters
would rein in the ECB's ability to jack up borrowing costs going
ahead, as the central bank didn't signal future moves amid an
uncertain outlook.
    Goldman Sachs, Morgan Stanley and at least two other banks
now expect the ECB to deliver a 25-bps hike in May.
    Focus now shifts to the Federal Reserve's meeting next week,
with traders now seeing a 67% likelihood of a smaller 25 bps
hike in the world's largest economy.
    Among single stocks, BT Group  BT.L  slid 6.1% after the
British telecom regulator delayed the telecoms firm's fibre
pricing decision.

 (Reporting by Bansari Mayur Kamdar and Ankika Biswas in
Bengaluru; Editing by Rashmi Aich and Sriraj Kalluvila)
 ((BansariMayur.Kamdar@thomsonreuters.com;  Twitter:
@BansariKamdar;))