"This action by America's largest banks reflects their confidence in First Republic and banks of all sizes, and demonstrates their overall commitment to helping banks serve their customers and communities," the document said.

First Republic is the 14th largest U.S. bank by asset size.

It found itself in trouble after the close failures of Silicon Valley Bank, Signature Bank and Silvergate, banks that had focused on particular sectors of activity because it mainly serves wealthy clients.

Observers feared that many customers would prefer to move their money to larger institutions that do not pose a priori risk of bankruptcy because they were too large for regulators to let close, and that First Republic would be the next domino to fall.

In one week, its stock has lost 73% on Wall Street.

Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, the country's four largest banks by asset size, are expected to each contribute five billion dollars.

Investment banks Goldman Sachs and Morgan Stanley are to pay $2.5 billion each, while BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank are to pay $1 billion.

After the failures of Silicon Valley Bank and Signature Bank, "a small number" of banks faced large withdrawals from accounts where more than $ 250,000 was deposited, the limit usually guaranteed by the authorities, the banks acknowledged in the statement.

But "the banking system has solid credit, abundant liquidity, large capital and high profitability. Recent events have not changed this situation," they add.

© 2023 AFP