The biggest bank failure in the nation since 2008 occurred last month when Silicon Valley Bank fell, and the US central bank has claimed that it did not act with "sufficient force and urgency" in its supervision of the institution.

One of the primary conclusions from the Federal Reserve's study into the occurrence is the conclusion.

It raised concerns about the state of the banking sector throughout the world.

First Republic, another US lender, is still having problems as of the time of the assessment.

According to reports, US regulators are preparing a potential rescue plan for the troubled company, which was the country's 14th-largest bank at the end of the previous year.

Michael Barr, the Federal Reserve's vice chair for supervision, who led the review, said the US central bank should toughen its rules in response to what it had learned from SVB's demise.

"Federal Reserve supervisors failed to take forceful enough action," he said, pointing to regulatory standards that were "too low", supervision that did not work with urgency, and risks to the wider system posed by troubles at a mid-size bank that Fed policies had missed.

"Following SVB's failure, we must strengthen the Federal Reserve's supervision and regulation," he said.

caption,Jerome Powell said he was confident the recommendations would lead to a more resilient banking system

The head of the Federal Reserve, chairman Jerome Powell, said he welcomed the "thorough and self-critical report".

"I agree with and support his recommendations to address our rules and supervisory practices, and I am confident they will lead to a stronger and more resilient banking system," he said.

The report from the Fed was one of three published by US officials on Friday, detailing regulatory lapses that contributed to the failures of SVB and Signature Bank last month.

Both banks catered to business customers and ran into trouble after the US central bank raised interest rates sharply last year which is when customers started to withdraw money.

SVB's subsequent announcement that it needed to raise funds last month prompted panic and billions of dollars were withdrawn overnight, forcing regulators to step in.

The fears then spread to other firms, including Signature Bank and First Republic, which suffered $100bn in outflows last month.

Shares in First Republic, worth more than $120 apiece at the beginning of March, fell more than 40% on Friday to below $4, as questions swirled about its future.