Individuals and businesses with deposits at failed US bank Silicon Valley Bank (SVB) will be able to access all their cash from Monday, the US government said.
A statement from the US Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) said depositors would be fully protected.
The statement said that the taxpayer will not bear any loss from this move.
SVB was shut down by regulators who seized its assets on Friday.
It was the biggest failure of a US bank since the 2008 financial crisis.
The move came as the firm, a major tech lender, was trying to raise money to offset losses from asset sales hit by higher interest rates.
“The U.S. banking system remains on a stable and strong footing, in large part because of the reforms that were enacted after the financial crisis that ensured better protections for the banking industry,” the officials said in a joint statement.
“Those reforms combined with today’s actions demonstrate our commitment to taking the necessary steps to ensure that depositors’ savings are protected.”
The actions also apply to New York’s Signature Bank, seen as the most vulnerable institution after SVB, which came under regulatory control on Sunday.
As part of their efforts to restore confidence, regulators also unveiled a new way to give banks access to emergency funds.
The Federal Reserve said it would offer support through a new bank term funding program, which would make it easier for banks to borrow from it in a crisis.
President Joe Biden said the American people “can be confident that their bank deposits will be there when they need them”.
SVB was seen as an important lender to early-stage businesses in the tech sector. It was the banking partner of nearly half of the US venture-backed technology and healthcare companies that listed on stock markets last year.
