(Bloomberg) -- US authorities raced on Sunday to stem jitters about the health of the financial system after the collapse of Silicon Valley Bank, introducing a new backstop for banks that Federal Reserve officials said was big enough to protect the nation’s deposits.

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The Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. jointly announced the efforts, aimed at strengthening confidence in the banking system after SVB’s failure spurred worry about spillover effects. Concerns spread Sunday when state regulators closed New York’s Signature Bank.

Regulators acted swiftly on a number of fronts to contain the potential fallout:

• The FDIC said it will resolve SVB in a way that that “fully protects all depositors.” Similarly, “all depositors” at Signature will be made whole.

• The Fed also announced a new “Bank Term Funding Program” that offers one-year loans to banks under easier terms than it typically provides.

• The Fed also is relaxing terms for lending through its discount window, its main direct lending facility.

With a senior Treasury official cautioning there were other banks that appeared to be in similar situations to SVB and Signature, regulators’ top concern was assuring business and household depositors were made whole on their deposits. That may help avoid any additional bank runs that could heighten the risk of a recession, at a time when the Fed continues to raise interest rates to rein in inflation.

The steps taken by regulators to shore up the American financial sector drove US stock futures and Treasuries higher in early trading Monday in Asia, as investors reacted to the moves. Contracts on the S&P 500 were up 1.2% as of 10:02 a.m. in Tokyo. Bank stocks had plunged last week by the most since the March 2020 pandemic shock.