First Republic Bank executives sought to alleviate fears after last week’s collapse of Silicon Valley Bank.
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First Republic Bank
worked overtime Sunday to reassure clients about the safety of its business after the collapse of Silicon Valley Bank last week sparked fears of contagion in the banking industry.
Early Sunday evening, First Republic executives issued a statement in which they highlighted the “continued strength” of its capital, liquidity, and operations. But that wasn’t all.
Soon after First Republic’s release, the Federal Reserve unveiled a new Bank Term Funding Program (BTFP), that would better-allow banks to manage their liquidity. In addition to the BTFP, the Fed also said it is easing conditions at its discount window, which allows lenders to make short-term borrowings to handle their liquidity needs.
Apparently, the Fed’s terms were too good to pass up. Later on Sunday, First Republic (ticker: FRC) said it “further enhanced and diversified its financial position” through additional liquidity from
JPMorgan Chase
(JPM) and the Fed. First Republic’s total available, unused liquidity is now more than $70 billion, the bank said. This is up from $60 billion it disclosed earlier Sunday. The bank added that this new amount does not include funding it is eligible to receive under BTFP.
“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized…
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