“With liquidity support, work such as deposit withdrawal on the same day proceeded smoothly”
(New York = Yonhap Infomax) Correspondent Haram Lim = First Republic Bank, a small and medium-sized bank that has been designated as the ‘second Silicon Valley Bank (SVB)’ and rumors of a crisis have erupted, announced that there is no bank run (large-scale withdrawal of funds) yet. He also claimed that banking operations, such as deposit withdrawals, are proceeding normally with the support of JPMorgan Chase and others.
On the 13th (local time), Jim Herbert, founder and chairman of First Republic Bank San Francisco (NYS:FRC), appeared on CNBC, an American economic broadcaster, and said, “There is no situation where large-scale deposit outflows from banks appear.” Due to financing, etc., we have met the demand for deposit withdrawals that occurred on the day, and business continues as usual.”
However, Herbert declined to comment on how much money was currently withdrawn from First Republic Bank.
The previous day, First Republic Bank said it had secured $70 billion in liquidity support from the US Federal Reserve and JP Morgan. In addition to the liquidity secured, the First Republic Bank can receive support from the new ‘Bank Term Funding Program’ (BTFP), which the Fed has decided to create to support bank liquidity.
However, the bank’s share price has plummeted as investors fear the possibility of a series of bankruptcies.
On the New York Stock Exchange, shares of First Republic Bank plunged more than 70% from the previous day to a level of $22.
Shares of First Republic Bank, which hovered above $120 until the middle of last week, fell more than 80% to the $20 level after the SVB bankruptcy.
Related stock: First Republic Bank San Francisco (NYS:FRC)
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