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The banking crisis that started from America is not giving people a chance to take a sigh of relief. Even after drowning many banks, this crisis continues to wreak havoc. The latest case is of First Republic Bank of America itself. In the midst of the banking crisis, during the March quarter, the deposits of this bank have declined by billions of dollars and now the bank has been forced to lay off employees.
The bank’s stock fell so much
First Republic Bank said on Monday that its deposits declined by more than $ 100 billion during the March quarter. Along with this, the bank also told that it is looking for options like restructuring its balance sheet including retrenchment of employees. Giving these information by the bank also affected the stock market and the shares of First Republic Bank fell by more than 20 percent in the US market on Monday.
didn’t help with this
First Republic Bank has released the financial results for the March quarter. Along with the result, the bank also gave the rest of the information. First Republic Bank’s profit during the March quarter was better than the market expectations, but the huge decline in deposits overshadowed the rest.
Deposit fell so much in 3 months
After the end of the December quarter, deposits of First Republic Bank stood at $176.43 billion. It came down to $ 104.47 billion in the March quarter. This is the situation when First Republic Bank received $ 30 billion in relief from banks like Bank of America, Citigroup, JP Morgan Chase and Wells Fargo during the March quarter. If we remove the help received from other banks, then the total deposits of First Republic Bank decreased by about $ 102 billion during the March quarter.
So many people can lose their jobs
First Republic Bank is now looking at various measures to cut expenses. The bank said that it is considering reducing the number of back offices along with cutting the package of its officers. Apart from this, First Republic Bank can also lay off 20 to 25 percent of its employees during the June quarter. The bank also plans to increase insured deposits and reduce borrowings from the US Central Bank Federal Reserve.
Many banks have become victims
Let us tell you that this time the banking crisis is being considered as the biggest crisis after 2008. This crisis has so far made many banks its victims. The current banking crisis started with the collapse of Silicon Valley Bank. After that many American banks came under its grip. The scope of the crisis has spread beyond America as well. Credit Suisse, one of the oldest banks in Europe, has also fallen prey to this banking crisis.
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