New Delhi: The US Bank Crisis has started to become serious in America and all efforts are being made to avoid this crisis. After closing Silicon Valley and then Signature Bank, First Republic Bank is also in bad condition. Over the past few years, its stock has seen a massive decline of up to 60%. To save it, the US banking sector is now working on India’s formula. The nation’s largest banks have invested $30 billion in the bank to save First Republic Bank.
11 banks will invest $30 billion
Learning from the collapse of Silicon Valley and Signature Bank, American lenders have now taken this special step to save the First Republic. Under this, a consortium of 11 US-based private banks, including Bank of America (BoA), Citigroup and JP Morgan Chase, has decided to deposit $30 billion in First Republic Bank.
Yes Bank took this step during the crisis
Talking about the connection of this step of the American banks with the Indian formula, let us tell you that at the time of Yes Bank crisis, the big banks of the country also took a similar step. Participating banks in the State Bank of India (SBI)-led rescue scheme invested heavily in Yes Bank to rescue the troubled bank. SBI has Rs. 6050 crore, ICICI Bank Rs. 1000 crore, Axis Bank Rs. 600 crore and Kotak Mahindra Bank Rs. 500 crores had been invested.
State Bank of India (SBI), HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank and IDFC First Bank have jointly invested Rs. 10,000 crore has been invested. Bandhan Bank and IDFC First Bank have also invested Rs. 300 crore and Rs. He played a role in saving Yes Bank by investing 250 crores.
Big banks will invest this way
To save First Republic Bank from sinking, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo are each going to invest $5 billion, while the others will invest $2.5 billion and $1 billion, respectively. Significantly, the serious impact of the banking crisis in America is being seen on the bank stocks in the stock markets around the world. Its impact is not limited to the US stock market, it has also reached Europe and the shares of Credit Suisse Bank have seen a steep decline. However, to help Credit Suisse, the Swiss National Bank approved a loan (short term loan) of over $50 billion, after which Credit Suisse’s stock rebounded.
Impact on startups with banks
The US bank crisis is not only affecting the world’s banking sector, but startups as well. A recently released report estimated that more than 10,000 startups worldwide could be affected after the Silicon Valley Bank loan. In India too, Minister of State for IT Rajeev Chandrasekhar held discussions with startups in a virtual meeting and assured them of help over concerns arising from its impact.