Banking crisis roundup - Friday
Quantum Commodity Intelligence - Oil prices have been dominated by the banking crisis since last week's collapse of Silicon Valley Bank, with contagion spilling over into the commodities sector. Crude Oil markets were hit hard again Friday as jitters returned across the banking sector.
**Nearly a dozen of the largest US banks have deposited $30 billion into First Republic Bank in an effort to stabilise the lender's balance sheet after its share prices plunged following the SVB failure, bank regulators announced late Thursday.
**Despite the support package, Fortune Magazine reported shares in some of the country's largest regional banks were deep in the red Friday morning as fears linger over further contagion. Shares in First Republic dropped around 25%,
**Shares of the 10 largest US banks by market capitalisation also fell at least 3% or more during Friday morning trade.
**Credit Suisse – the beleaguered Swiss banking giant – was also down by around 8%.
**Banks have borrowed a record $153 billion from the US Federal Reserve this week, as banks scrambled for emergency liquidity, beating previous highs set during the 2008 credit crunch.
**SVB Financial Group, the parent company of Silicon Valley Bank, said Friday it has filed for a court-supervised reorganisation under Chapter 11 bankruptcy protection.
**The European Central Bank supervisors see no contagion for eurozone banks from the recent upheaval, an ECB source told Reuters Friday
**The UAE and other GCC banks can manage the contagion risk as local banks have limited or no exposure, and the regional lenders also enjoy the strong support of the governments. S&P Global said only five of the 19 banks it rates in the region have over 5% of assets in the US.