A slowdown in U.S. depositors shifting deposits from smaller banks to larger ones showed that regulators' rescue measures have had some success, but the situation at First Republic Bank (FRC) remained worrisome.

(AFP)

[Compile Lu Yongshan/Comprehensive Report] Since the collapse of Silicon Valley Bank (SVB) on March 10, depositors have transferred a large amount of deposits from small banks to big banks such as JPMorgan Chase and Wells Fargo, which has caused First Republic Bank (FRC), Outflows and slumping stock prices from peers such as PacWest Bancorp have rattled global markets, but CNBC reported that concerns about the stability of regional banks have eased in recent days, suggesting the U.S. regulator's action has received some relief. effectiveness.

 The global market turmoil sparked by the Silicon Valley bank's collapse, which has forced U.S. regulators to intervene to protect bank customers, has improved since March 16, when 11 of Wall Street's biggest lenders deposited $30 billion with the FRC, according to people familiar with the matter. Deposits, in effect returning some of the deposits they've recently earned.

The development gives US regulators and individual banks some breathing room to address stress in the US financial system following the collapse of SVB.

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 The takeover of Signature Bank comes two days after SVB was taken over, with US regulators using emergency powers to support customers of both banks.

The incident took the world by storm, and a week later the Swiss government forced UBS and Credit Suisse to merge to bolster confidence in the European banking sector.

 That situation puts big banks such as JPMorgan and Goldman Sachs in the awkward position of wearing multiple hats during the crisis.

Big banks are advising smaller lenders while taking part in steps regulators have taken to restore confidence in the U.S. banking system and support struggling smaller lenders like FRC while securing billions in deposits and possibly Participate in bidding for assets sold by receivership banks.

 While deposits into one big bank have slowed to a "trickle," the situation is fluid and could change if concerns about other banks revive, the people said.

Deposit inflows at another large West Coast bank have only slowed in recent days, according to another person familiar with the matter.

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