The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Big banks infuse $30B of deposits into First Republic

First Republic Bank in San Francisco will receive a total of $30 billion of uninsured deposits from 11 U.S. banks.

The bank said in a press release that the funds will come from Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist and U.S. Bank.

The “collective support strengthens our liquidity position, reflects the ongoing quality of our business, and is a vote of confidence for First Republic and the entire U.S. banking system,” First Republic said in the release.

Following the failures of Silicon Valley Bank and Signature Bank, First Republic obtained more liquidity through additional borrowing capacity.

The bank said in the latest release that it had a cash position of about $34 billion, excluding the latest infusion of deposits. Between March 10 and March 15, bank borrowings from the Federal Reserve varied from $20 billion to $109 billion.

Since March 9, First Republic increased short-term borrowings from the Federal Home Loan Bank by $10 billion. Insured deposits from March 8 to March 15 have “remained stable,” the bank said.

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