A group of 11 large US banks has invested $30 billion in deposits into First Republic Bank, which had been seen under a looming risk of collapse. 

The move to rescue the lender came as authorities in the US are trying to ease panic over the health of banking system, after a series of bank collapses in the US. 

According to a BBC report, some of the biggest US banking names including JP Morgan Chase & Co, Goldman Sachs, Citigroup Inc, Bank of America Corp, Wells Fargo & Co, and Morgan Stanley were involved in the rescue. 

US regulators said the show of support was most welcome and showed the resilience of the banking system. 

First Republic Bank’s stock closed up to 10 percent on news of the rescue but its shares fell 18 percent in after-market trading, after the bank said it would suspend its dividend, reported Reuters. The bank’s stock price is down more than 70 percent since March 6.

As per the Reuters report, news of the rescue also helped boost Wall Street indexes, with JP Morgan, Morgan Stanley, and Bank of America all up more than 1 percent, while the benchmark S&P 500 Banks Index recovered 2 percent. 

As reported earlier, global banking stocks have been battered since the collapse of Silicon Valley Bank (SVB) last week due to bond-related losses that piled up when interest rates surged last year. 
 

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