But a sell-off started again in after-hours trade in a sign that concerns remain.

But a sell-off started again in after-hours trade in a sign that concerns remain.

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The San Francisco-based firm had seen its share price plunge nearly 70% over the last week, as investors worried it was the next bank at risk of a rush of customers withdrawing their deposits.

"This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system," US financial officials said.

'Risk of contagion'

Problems in the banking sector surfaced in the US last week when Silicon Valley Bank (SVB), the country's 16th-largest lender, collapsed in the biggest failure of a US bank since 2008.

That was followed two days later by the failure of New York's Signature Bank.

Authorities stepped in to guarantee deposits beyond typical limits in an effort to head off further runs on bank deposits, but financial markets have remained jumpy.

In a sign of strains in the system, the US central bank reported a surge in emergency lending to banks, with $318bn in outstanding loans as of Wednesday, up from $15bn a week earlier.