First Republic Bank shares plummeted at the open despite efforts to reassure investors, amid turmoil from the collapse of Silicon Valley Bank.
The turmoil following the collapse of Silicon Valley Bank continued to spread Monday, with First Republic Bank shares falling a record 78% at the open despite efforts by the U.S. regional lender to reassure investors on its liquidity.
The assurances failed to win over investors with many rushing for safety in U.S. and German debt, underlining concerns over the potential for rising interest rates to uncover hidden risks elsewhere. European bank stocks slumped even though analysts including at Deutsche Bank AG and Citigroup said the SVB crisis had little bearing on the outlook for lenders in the region which have recently posted robust profits.
The German operations aren’t considered to be systemically relevant, BaFin said. The Frankfurt-based institution’s balance sheet amounted to 789.2 million euros at the end of last year and doesn’t take deposits, according to the regulator.
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