USA: US regulators on Sunday shut down New York-based Signature Bank, the third failure in the country's banking sector in less than a week.

According to a joint statement from the Federal Reserve, the US Treasury and the Federal Deposit Insurance Corporation (FDIC), the lender was "closed by its state chartering authority."

The regulator's announcement of a new emergency program to bail out bank depositors was made in a statement. He explained that he would create a "systemic risk exception" for both Signature and Silicon Valley Bank (SVB), a lender focused on technology and start-ups that closed last week after a bank run, So that the customer can have full access to his deposits of both the banks.

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From Monday, March 13, [SVB] depositors will have full access to their funds. A similar systemic risk exception is being announced for Signature Bank. This organization will make all depositors perfect.

The regulators declared that there would be no taxpayer harm in the case of the Silicon Valley bank's resolution, adding that they would use the FDIC's deposit insurance fund to fully protect all depositors, insured and uninsured.

The crypto industry received significant funding from Signature. As of December 31, it had $110.4 billion in total assets and $88.6 billion in total deposits, according to a securities filing.

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According to New York State officials, the decision to close the bank was made "in light of market events" in an effort to protect bank customers and the financial system. After the collapse of SVB last week, Signature also experienced a drop in share price as a result of withdrawal of deposits.

Signature's demise is the third significant failure in the US banking sector in the past week. Last Wednesday, California-based crypto-focused Silvergate was the first to announce its impending liquidation.

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On Friday, the SVB implosion—the biggest US bank failure since the 2008 financial crisis occurred. The bank's failures resulted in concerns being raised over the health of the entire US banking system, and several other lenders saw their stock prices decline.