Bank stocks around the world plunged on Monday even as President Joe Biden vowed to take whatever action was needed to ensure the safety of the US banking system, after Silicon Valley Bank and Signature Bank collapsed late last week.

Biden’s attempt to reassure markets and depositors came after emergency measures by the United States to guarantee deposits at tech-focused lender SVB failed to dispel investor worries about potential contagion to other banks worldwide.

After a dramatic weekend, US regulators said the failed bank’s customers will have access to all their deposits starting Monday and set up a new facility to give banks access to emergency funds.

The US Federal Reserve also made it easier for banks to borrow from it in emergencies.

In the UK, HSBC bought the UK arm of SVB for a symbolic one pound on Monday, rescuing a key lender for technology start-ups in Britain.

The deal, which sees one of the world’s biggest banks, with $2.9 trillion of assets, take the doomed British arm of the tech lender under its wing, brought to an end frantic weekend talks between the government, regulators, and prospective buyers.

While the measures provided some relief for Silicon Valley firms and global markets on Monday, worries about broader banking risks remain and have cast doubts over whether the US Fed will stick with its plan for aggressive interest rate hikes.

In the United States, First Republic Bank tumbled as much as 76.6 per cent despite news it had secured fresh financing, while Western Alliance Bancorp and PacWest Bancorp fell 82.5 per cent and 53 per cent, respectively.

Trading in the stocks was halted several times due to volatility.

First Republic had been able to meet withdrawal demands on Monday with the help of extra funding from JP Morgan Chase, the mid-cap lender’s executive chair Jim Herbert told CNBC, adding that it was not seeing a massive deposit outflow.

A senior European Central Bank supervisor said the board which oversees the euro zone’s biggest banks did not see any need for an emergency meeting.

Biden said his administration’s rapid actions at the weekend should reassure Americans that the US banking system is safe, and promised stiffer bank regulation after the country’s biggest bank failure since the 2008 financial crisis.

“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” he said.

Nevertheless, shares in big US banks including JP Morgan Chase, Morgan Stanley and Bank of America also weakened, along with wider stock markets.