Big news! The US banking crisis reappears! Republic First Bank collapsed, 32 branches were urgently taken over, and the financial storm is imminent! The Federal Deposit Insurance Corporation (FDIC) recently announced that Pennsylvania regulators have decisively closed Republic First Bank, making it the first US bank to go bankrupt this year. This news shocked the global financial market and once again highlighted the severe challenges facing local banks in the United States. At present, local banks across the United States are in an unprecedented turmoil. The surge in interest rates is like a double-edged sword. On the one hand, it weakens the credit industry on which these banks rely, and on the other hand, it also leads to a sharp drop in the value of commercial real estate, especially those office buildings that are coping with soaring vacancy rates after the COVID-19 pandemic. This double blow has caused the financial risks of many regional and community banks to rise sharply, and outstanding loans supported by real estate that have lost their value are facing huge refinancing challenges. Following the collapse of Silicon Valley Bank, Signature Bank and First Republic Bank in the United States last year, the collapse of Republic First Bank once again sounded the alarm for the US financial system. This is not only another tragedy of regional bank closures in the United States, but also another signal of global financial turmoil. According to FDIC data, 5 banks in the United States have closed down in 2023, which is a shocking number. However, financial turmoil seems to be just the tip of the iceberg. The current global situation is tense and the support of the monetary system has been greatly reduced. The soaring price of gold is a strong proof of the instability of the monetary system.
Faced with such a severe situation, we can't help but ask: Can the US banking system withstand the test of this storm? How will the global financial market respond to this series of bank failures? All of this deserves our close attention.
