Republic First Bank Closure: First US Bank Failure of 2024

The
closure
of
Republic
First
Bank,
a
regional
lender
that
had
operations
in
the
states
of
Pennsylvania,
New
Jersey,
and
New
York,
was
a
major
event
involving
the
regulatory
authorities
.
In
the
year
2024,
its
shutdown
represents
the
first
collapse
of
a
financial
institution
in
the
United
States.
As
of
the
31st
of
January,
the
bank,
which
was
operating
under
the
name
Republic
Bank,
had
around
$6
billion
in
total
assets
and
$4
billion
in
total
deposits
[2].

Details
of
the
Closure

The
Pennsylvania
Department
of
Banking
and
Securities
was
the
one
who
initiated
the
closure
of
Republic
First
Bank,
and
the
Federal
Deposit
Insurance
Corporation
(FDIC)
was
named
as
the
receiver
of
the
bank.

Fulton
Bank,
which
has
its
headquarters
in
Lancaster,
Pennsylvania,
has
reached
an
agreement
to
buy
almost
all
of
the
assets
of
the
failing
bank
and
to
take
over
a
significant
portion
of
the
financial
institution’s
deposits.

It
is
expected
that
the
32
branches
of
Republic
Bank
will
reopen
as
branches
of
Fulton
Bank
as
early
as
Saturday,
which
would
ensure
that
clients
will
continue
to
get
financial
services.

Depositors
of
Republic
Bank
will
be
transferred
to
Fulton
Bank,
and
they
will
not
be
required
to
make
any
changes
to
their
banking
relationship
in
order
to
keep
their
deposit
insurance
coverage.

Depositors
of
Republic
First
Bank
have
the
ability
to
retrieve
their
cash
via
cheques
or
automated
teller
machines
as
early
as
Friday
night.

It
is
anticipated
that
the
deposit
insurance
fund
would
incur
a
loss
of
$667
million
as
a
result
of
the
collapse
of
Republic
First
Bank.

Influence
on
the
Cryptocurrency
Market

Bitcoin
and
Ether
have
both
seen
a
decline
in
price
as
a
result
of
the
collapse
of
Republic
First
Bank,
which
has
caused
controversy
and
anxiety
within
the
cryptocurrency
community.
It
is
possible
that
the
liquidation
of
a
conventional
bank
may
result
in
an
upsurge
in
interest
in
decentralised
finance
and
cryptocurrencies
as
prospective
alternatives
to
established
financial
institutions.

Reasons
for
the
Failure
of
the
Bank

There
has
been
an
increase
in
the
financial
risks
that
many
regional
and
community
banks
are
facing
as
a
result
of
rising
interest
rates
and
dropping
commercial
real
estate
prices.
This
is
especially
true
for
office
buildings
that
have
been
impacted
by
the
surge
in
vacancy
rates
associated
with
the
epidemic.

It
has
become
difficult
for
financial
institutions
to
refinance
their
loan
portfolios
and
manage
their
loan
portfolios
as
a
result
of
outstanding
loans
that
are
secured
by
assets
that
have
lost
value.

Image
source:
Shutterstock

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