In search of a safe haven in times of turbulence: Effects of First Republic Bank failure on global asset markets
Haitham Nobanee,
Philip Anthony Hamill,
Wajahat Azmi,
Dipanwita Chakraborty,
Xuan-Hoa Nghiem
Affiliations
Haitham Nobanee
College of Business, Abu Dhabi University, United Arab Emirates; Oxford Centre for Islamic Studies, University of Oxford, United Kingdom; Faculty of Humanities & Social Sciences, The University of Liverpool, United Kingdom; Corresponding author. College of Business, Abu Dhabi University, P.O. Box 59911, Abu Dhabi, United Arab Emirates.
Philip Anthony Hamill
College of Business, Abu Dhabi University, United Arab Emirates
Wajahat Azmi
Thiagarajar School of Management, India
Dipanwita Chakraborty
Jagan Institute of Management Studies, India; Indian Institute of Technology Kharagpur, India
Xuan-Hoa Nghiem
International School, Vietnam National University, Hanoi, Viet Nam
The failure of First Republic Bank (FRB) – the largest bankruptcy in the US banking system since the GFC – may send chilling effects through different asset markets in the US and even worldwide. This paper aims to clarify the effects of FRB failure on several assets and figure out potential safe havens for investors during the 2023 US banking turmoil. Results from the event study approach reveal that eleven particular assets are relatively safe during the current turbulence. Several important implications are made for investors, portfolio managers, and policymakers.
