MOSCOW, Apr 26 First Republic Bank share price drops by 17% on Wednesday, the bank's securities are rapidly depreciating for the second day in a row, follows from trading data.
As of 4:47 pm Moscow time, the price of one share of First Republic Bank fell by 17.22% to $6.71. For a short period, from 16.41 to 16.46 Moscow time, trading in the bank's shares was suspended.
On Tuesday, First Republic Bank said in a statement that it lost more than $100 billion in deposits in the first quarter of this year. The media later reported that the bank was considering selling some of its assets worth between $50 billion and $100 billion. Against this background, the value of First Republic Bank securities fell by 49.4%.
California regulators closed Silicon Valley Bank (SVB) on March 10, the largest bank failure in the US since the 2008 financial crisis. The collapse of the SVB is associated with an increase in the key rate of the Federal Reserve System, which led to the depreciation of assets on the balance sheets of many financial institutions. In addition, on March 8, the closure of the crypto-focused bank Silvergate was announced, and on March 12, a similar New York-based Signature Bank.
As the New York Times reported, SVB's bankruptcy raised fears that other US banks could run into problems. Against this backdrop, there was a «dumping» of shares of similar SVB banks, such as First Republic, Signature Bank and Western Alliance, on the market. These financial institutions have investment portfolios similar to those of SVB.