The US banking sector is “stabilising” after the collapse of Silicon Valley Bank sparked fears of a potential global financial crisis, Treasury Secretary Janet Yellen has said.

Axar.az reports the failures of SVB and Signature Bank had profound impacts in the US, leading to other regional bank shares experiencing massive slumps.

“The situation is stabilising and the US banking system remains sound,” Ms Yellen said in remarks at an American Bankers Association summit in Washington.

Ms Yellen said she and federal regulators used emergency measures to protect depositors at those banks and stem any contagion that may have resulted from SVB and Signature's collapse.