Eleven US banks, including Bank of America, Citigroup and JPMorgan, have agreed to transfer a total of $30 billion in deposits to the ailing First Republic. The injection is a “sign of their confidence in the country’s banking system,” a joint statement said.
The measure is intended to provide First Republic with liquidity and to underline confidence in the American financial system, it sounds. “This shows the overall commitment to helping banks, serving their customers and communities,” the banks said.
First Republic is one of the regional American money houses that came under pressure on the stock market after the collapse of Silicon Valley Bank. Recently, First Republic was downgraded by rating agencies due to liquidity and financing risks. Founded in 1985 in San Francisco, First Republic is the 14th largest bank in the United States by balance sheet size. She has $212 billion in investments outstanding and over $176 billion in deposits.