This spring has not been the best time for the US banking industry. The collapse of successful banks – Silicon Valley Bank and Signature Bank – has shaken the American financial system.
Bloomberg reports that First Republic Bank, whose shares fell nearly 50% on April 25, and another 30% on Wednesday, may also join this pair. American credit institutions are increasingly forced to borrow money from the Fed – the financial regulator.
The Fed’s next meeting is scheduled for early May, where it will discuss financial risks and ways to fight inflation. According to analysts, the regulator will increase the key rate by 0.25 to 5.25% per year, which will lead to an increase in the cost of loans.
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