Washington: According to sources cited by several media outlets on Saturday, the Federal Deposit Insurance Corporation (FDIC), the primary federal regulator of US banks, has set a deadline of Sunday for bids to purchase the struggling First Republic Bank.

The FDIC requested bids for the failing bank earlier this week from a number of organisations, including the biggest bank in the nation, JPMorgan Chase, in an effort to find a buyer before it enters receivership. In its capacity as receiver, the FDIC would oversee the bank's operations until its assets were sold.

There are five potential bidders, a source told FOX Business, and the winner will probably be revealed later on Sunday or early on Monday.

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Given the 75% drop in its share price last week following dismal first-quarter earnings and significant deposit outflows, Reuters claims that receivership is imminent. The bank's stock fell to a record low of $2.99 on Friday, dropping nearly 98% from the previous year.

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After the failures of Silicon Valley Bank and Signature Bank in March, First Republic Bank would become the third US lender to fail if the FDIC were to seize it. Following significant bank runs, regulators closed both down.

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Analysts contend that finding a buyer first would allay concerns about further contagion in the US banking industry and reduce pressure on the FDIC's deposit insurance fund.

The FDIC and JPMorgan both declined to respond to the reports.