SVB (Silicon Valley Bank), JP Morgan, Bank of America, Citibank and Wells Fargo logos are seen through broken glass in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration
A wave of customers have applied to shift their accounts to large U.S. banks such as JPMorgan Chase & Co and Citigroup Inc from smaller lenders after the collapse of Silicon Valley Bank, the Financial Times reported on Tuesday.
These lenders, including Bank of America Corp, are trying to accommodate such transfer requests by taking extra steps to speed up the normal sign-up process, among other steps, the FT said, citing several people familiar with the matter.
Even the U.S. government’s emergency measures to stop the collapse of more banks have not stopped depositors from trying to move their accounts to larger banks or to shift to money market funds, FT reported.
The Federal Deposit Insurance Corp stepped in on Friday to protect the deposits of up to $250,000, but deposits over that amount – which accounted for 85 percent of SVB accounts – are at risk.
Citi declined to comment on the report, while JPMorgan and Bank of America did not respond to Reuters requests for comment.
Shares of U.S. regional banks such as First Republic Bank, Western Alliance and KeyCorp have slumped on fears of possible bank contagion following the collapse of SVB and Signature Bank.
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Silicon Valley Bank collapse: What you need to know