The Philadelphia-based bank was seized by the Pennsylvania Department of Banking and Securities. Republic Bank had about $6 billion in total assets and $4 billion in total deposits, as of January 31, 2024. The FDIC estimated the cost of the failure to its fund would be $667 million.
May 2: Regulators seized First Republic Bank (FRC.N) and sold its assets to JPMorgan Chase & Co (JPM.N) on Monday, in a deal to resolve the largest U.S. bank failure since the 2008 financial crisis and draw a line under a lingering banking turmoil.
What has led to bank failures in the US may look different from what Bangladeshi banks are living through now, but the bottom line is the same. The failure to understand the term mismatch between assets and liabilities, and inept risk management – which led to the collapse of two US banks – are quite common in most Bangladeshi banks (with a slightly different texture).