In the wake of the largest banking sector crisis since 2008, First Republic Bank announced a more than $100 billion drop in deposits in the first quarter, sending its shares plunge more than 40% on Tuesday.
A number of regional lenders experienced a liquidity crisis last month as a result of the collapse of two U.S. banks. This has shaken investor trust in the industry.
As it manages the dual problem of persuading consumers that their money remains safe and investors that it has the liquidity to escape from the crisis, The First Republic has been in a tailspin in recent weeks.
The KBW Regional Banking Index has decreased by roughly 22% this year due to the widespread turmoil in the industry, whereas First Republic's stock fell by about 87% as a result.
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