Wall Street giants inject $40.3b to shore up First Republic Bank

America's largest banks moved on Thursday to shore up First Republic Bank, easing fears that the regional US lender could be the next domino to fall after collapses including Silicon Valley Bank (SVB).

A consortium of 11 US private banks, including Bank of America, Citigroup and JPMorgan Chase, announced they would deposit US$30 billion (S$40.3 billion) into First Republic.

The move marks a dramatic initiative by the lenders to bolster the system following failures of three mid-sized lenders in the last week.

"This action by America's largest banks reflects their confidence in First Republic and in banks of all sizes," the group said in a joint statement.

"Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most," the banks said.

Shares of First Republic pared earlier losses to trade higher on Wall Street on Thursday following reports it could receive an infusion of funds from some of the country's most prominent financial institutions.

"This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system," leaders of the Treasury Department, United States Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency said in a joint statement.