This was preceded by a further downgrade of First Republic’s credit rating by the rating agency Standard & Poor’s. Credit watchdogs say the $30 billion in deposits will alleviate acute liquidity pressures but may not solve the bank’s “significant” problems.
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Aside from First Republic Bank, however, stress in the US banking sector eased significantly on Monday. Most of the other institutions counted by investors in the meantime posted price increases. Since the bankruptcy of the crypto bank Silvergate and the collapses of Silicon Valley and Signature Bank threw the industry into chaos, the US banking sector has developed into a kind of two-tier society anyway. At times, deposits were shifted en masse from smaller institutions to large banks, which are subject to stricter capital regulations because of their systemic importance, which is perceived by financial regulators.