A huge number of customers have applied to shift accounts to large U.S. banks such as JPMorgan Chase &Co. and Citigroup Inc., due to the Silicon Valley Bank (SVB) collapse on Friday, Financial Times reported on Tuesday.
These lenders along with Bank of America Corp. are trying to take in transfers by taking extra steps to speed up the sign-up procedures, said the Financial Times.
The report also showed that the U.S. government’s emergency measures to stop other banks from crashing were not able to stop depositors from moving their accounts to larger banks or to shift to money market funds.
Federal Deposit Insurance Corporation (FDIC) took action on Friday to protect the deposits of around $250,000. However, deposits over that amount, which are almost 85 percent of SVB accounts, remain at risk.
Shares of U.S. regional banks such as Western Alliance, KeyCorp, and First Republic Bank have all slumped due to worried of possible bank crashes after the collapse of SVB and Signature Bank.