The First Republic deal has come at a crucial point for the markets and economy

JPMorgan Chase’s takeover of First Republic likely ends the panic phase of the banking crisis, with the fallout left to come in a pivotal week for markets and the economy.

Following an unsuccessful effort to keep First Republic open, the largest U.S. bank by deposits reached a deal to take over the 14th-largest financial institution. In doing so, JPMorgan helped avert a destabilizing broad collapse in the sector, but by no means solved all the banking problems likely to come.

“This is not the end,” said Gary Cohn, former chief operating officer at Goldman Sachs,…