PacWest Reels As Withdrawals Swamp Bank

Pacific Western Bank (PacWest), a unit of PacWest Bankcorp., said on Friday (Saturday, Mar. 18, 2023, in Manila) it had witnessed “elevated” withdrawals following the collapse of Silicon Valley Bank and Signature Bank, Reuters reported.

Photo Insert: The Los Angeles-based bank gave no details on the sum of the withdrawals but said they were mainly from its venture banking business line.

The Los Angeles-based bank gave no details on the sum of the withdrawals but said they were mainly from its venture banking business line. PacWest said it has solid liquidity, with available cash exceeding $10.8 billion as of Friday.

Reuters reported on Thursday that PacWest was in talks about a liquidity boost with Atlas SP Partners and other investment firms.

The statement late on Friday came after PacWest's shares had slumped 19%, ending the week that was dominated by an unfolding crisis in the banking sector. "Since Monday, March 13, 2023, net outflows have fallen sharply, with deposit balance fluctuations substantially stabilizing," it said in a statement.

Pacific Western Bank said that as of March 16, insured deposits accounted for over 62% of total deposits, while insured venture-specific deposits made up more than 77% of total venture deposits. Venture deposits comprise approximately 25% of total deposits.

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