US bank failure again… Republic First Bank – First case this year (feat Bitcoin)

Republic First Bank in Pennsylvania, USA, has officially collapsed and been taken over by regulators.

According to Watchguru on the 27th (local time), the Federal Deposit Insurance Corporation (FDIC) announced that Republic First Bank was shut down by Pennsylvania state regulators. This is the first bank failure in the United States this year.

“The Pennsylvania Department of Banking and Securities today closed Philadelphia-based Republic First Bank and designated the Federal Deposit Insurance Corporation as the receiver,” the FDIC said in a statement. He continued, “To protect depositors, the FDIC entered into an agreement with Fulton Bank of Lancaster, Pennsylvania to purchase most of the deposits and assets.”

In a statement, the FDIC outlined Republic First Bank’s future operating plans for its current 32 branches. Their branches in New Jersey, Pennsylvania and New York will reopen as Fulton Bank branches. Reopening dates vary depending on each branch’s operating hours.

Currently, bank members can access their funds by writing a check or using an ATM or debit card. Loan customers must repay their loans as usual.

As of January 31, 2024, Republic First Bank had total assets of approximately $6 billion and total deposits of approximately $4 billion, the FDIC said. It is the first bank to collapse in the U.S. since Citizens Bank in Sac City, Iowa, in November last year.

Typically, a banking crisis is good news for Bitcoin. This is because the nature of Bitcoin, which operates without a central trust organization such as a bank, makes Bitcoin stand out as a safe asset when bank closures and bank runs occur.

Bitcoin’s price rose as it was recognized as a safe asset that could protect against systemic crises during banking crises such as the bankruptcy of Silicon Valley Bank (SVB) in March last year.