PacWest Bancorp loses significant deposits, suffers 20% stock drop amid banking sector fears

05/11 23:06

PacWest Bancorp, a California-based lender, experienced a significant decline in deposits, causing its stock price to fall by over 20%. The bank attributed the decline to heightened market and customer fears following the closure of First Republic Bank by regulators. The bank clarified that it has already funded its decline in deposits with available on-balance-sheet liquidity and held immediately available liquidity of $15 billion as of May 10. Other regional banks, such as Western Alliance, also experienced significant volatility after previous bank failures, but reported an increase in deposits between May 2 and May 9.
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