First Republic Bank enhanced and diversified its financial position through additional liquidity from the Federal Reserve Bank and JPMorgan Chase

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First Republic Bank, a leading US private banking institution, announced it had acquired?additional borrowing capacity from the Federal Reserve and JPMorgan Chase & Co.

Access to additional financing is crucial as US financial institutions face liquidity challenges amid the collapse of Silicon Valley (SVB) and Signature Banks.

By securing another loan source, First Republic now has a?total of $70 billion?available and unused liquidity to fund operations. Importantly, its?liquidity profile has also become more diversified, since overreliance on one financial institution is specifically risky in current market conditions.

The bank still has?continued access to funding through the Federal Home Loan Bank. Besides, First Republic is eligible to receive a loan under the new Bank Term Funding Program announced by the Federal Reserve, if needed.

Jim Herbert, Founder and Executive Chairman and Mike Roffler, CEO and President of First Republic Bank assured the customers that the institution will continue to “operate with an emphasis on safety and stability at all times”, still able “to fund loans, process transactions and fully serve the needs of clients by delivering exceptional service,” without any disruptions from the wider industry turmoil.

As concerns mount, US regulators brought some relief to investors with promises that the customers of affected banks will have access to all their deposits starting today with the help of emergency funds.

Numerous institutions both in the US and abroad rushed to inform the stakeholders of their minimal involvement with the recently failed banks to avoid the contagion.

Meanwhile, the events of the dramatic weekend for FS markets?cast doubts over whether the Fed will stick with its previous plan for aggressive interest rate hikes.