After the bankruptcy of two banks, the US administration has taken emergency measures to save the banking system and increase confidence in it.
According to Reuters, US President Joe Biden has decided to take action against those responsible for the banking crisis.
President Joe Biden said in a statement Sunday evening that the Treasury secretary and the director of the National Economic Council have worked closely with bank regulators to address the issues.
President Joe Biden said that the American people and institutions should have confidence that the money in their banks is safe and that they can get their money when they need it.
US regulators have said bank customers will have access to all their deposits from Monday as regulators set up a new facility to give banks access to emergency funds.
The US Federal Reserve has also made it easier for banks to borrow from reserves during emergencies.
After Silicon Valley Bank, New York’s Signature Bank was also hit by the financial crisis. This too has been blocked by regulators.
The US Federal Deposit Insurance Corporation says it has taken control of about $175 billion held by the bank.
This is the first time since the 2008 financial crisis that a bank has gone bankrupt.
A senior US Treasury official has said that the measures taken by the Biden administration will protect depositors and help the banking system.
He says that authorities and institutions are monitoring the financial system.
Whenever a bank is in crisis, especially with billions of dollars in reserves, it’s a matter we take seriously, he added.
Earlier, Treasury Secretary Janet Yellen said, “We were looking at Silicon Valley Bank carefully and decided to close the bank.”