Global financial stocks have reportedly lost around $465 billion in value following the collapse of Silicon Valley Bank (SVB).

In the US, First Republic bank saw a decline of 62 per cent and Western Alliance Bank experienced a stock drop of 47 per cent.

According to the Guardian, JPMorgan and Citigroup – among other US banks – have seen an uptick in customer applications to shift their accounts to larger lenders following SVB’s collapse.

The market contagion wrought by the collapse of the former sixteenth biggest US bank has also spread to affect stock markets around the world.

While the UK’s FTSE 100 index declined by almost three per cent - its lowest since the start of January - Charlie Nunn, chief executive of Lloyds, does not foresee the same aftershocks happening in the UK as in the US.

“We haven’t seen what we’ve seen in the US, which is the flight to quality,” Nunn said at a Morgan Stanley event, as reported by Reuters. “But let’s see how that plays out and we’ll see how people feel over the next period of time.”

Japan’s Topix Banks index is currently down by over seven per cent, with stock listers Mitsubishi UFJ Financial Group down over eight per cent and Mizuho Financial Group down by over seven per cent.

After the US Federal Reserve recently raised interest rates in a bid to tackle inflation, a bank run late last week led to SVB’s insolvency.

The UK government and the Bank of England (BoE) brokered a rescue deal on Monday to sell the UK division of collapsed Silicon Valley Bank (SVB) to HSBC.

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