In a statement issued late on Sunday, the San Francisco-based entity issued a statement seeking to assuage concerns surrounding its business following the collapse of SVB.
First Republic Bank more than 60% plummeted in operations prior to the opening of the market, due to doubts about the risk of contagion after the bankruptcy of SVB. bankruptcy of Silicon Valley Bank continues to raise uncertainty about US banks.
In a statement issued late on Sunday, the San Francisco-based bank sought to assuage concerns about the bank following the collapse of SVB. In the letter, the Californian firm stressed that it had more than 70,000 million dollars in unused liquidity to finance operations thanks to various agreements with the Federal Reserve (Fed) and JP Morgan bank.
“The additional lending capacity of the Federal Reserve, continued access to financing through the Federal Home Loan Bank, and the ability to access additional financing through JPMorgan Chase further enhances, diversifies, and strengthens the existing liquidity profile of First Republic”, they explained from the bank.
“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks. First Republic continues to finance loans, process transactions and fully serve the needs of customers by providing exceptional service,” he said. Jim Herbert, founder and CEO of the bank.
According to January data, First Republic had $212.6 billion in assets under management. Also, the San Francisco bank was not the only regional financial institution to come under pressure after the implosion of SVB.
The collapse of Silicon Valley and the first reaction of the Fed
Federal authorities closed Silicon Valley Bank last Friday and seized its deposits in the largest bank failure in the United States since the 2008 financial crisis. This collapse, according to some experts, is also the second largest bank failure in history.
Following these events, many analysts predict that the Federal Reserve (Fed) will give a swerve in its monetary policy. Goldman Sachs said it sees no reason for the Federal Reserve to raise rates at next week’s meeting due to “recent tensions in the financial sector.” “In light of the tension in the banking system, we no longer expect the FOMC to raise rates at its next meeting on March 22,” the New York bank has indicated.
Source: Ambito
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