A group of major US banks have collaborated to deposit $30bn into First Republic Bank, in an attempt to shore up its finances and stem the fallout amid the wider US regional banking turmoil.

JP Morgan Chase, Bank of America, Citigroup and Wells Fargo will each deposit $5bn into First Republic; Goldman Sachs and Morgan Stanley will put in $2.5bn apiece while BNY Mellon, PNC Bank, State Street, Truist and US Bank are depositing $1bn each.

In a combined statement, the banks said the actions "by the largest US banks reflects their confidence in the country's banking system and helps ensure First Republic has the liquidity to continue serving its customers".

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It added it "demonstrates the overall commitment to helping banks serve their customers and communities.

"Regional, midsize and small banks are critical to the health and functioning of our financial system."

First Republic Bank's share price was down 17% at close yesterday (16 March), according to Market Watch data.

This move comes after US authorities stepped in to take control of Silicon Valley Bank and Signature Bank last weekend after frightened customers pulled their deposits.

Banks and regulators are hoping that these interventions will act as a firewall and stop the crisis spreading to other, smaller banks.

In a joint statement, US Treasury secretary Janet Yellen, Federal Reserve chair Jerome Powell and senior regulators said: "This show of support by a group of large banks is most welcome and demonstrates the resilience of the banking system."

Speaking at congress, Yellen claimed the US banking system "remains sound".