The Biden administration is under mounting pressure to call for an expansion of the federal guarantee on bank deposits to shore up confidence in the financial system and prevent further distress among US regional banks.

The Federal Deposit Insurance Corporation, which is funded by banks, guarantees deposits up to $250,000. But a growing chorus of influential bipartisan lawmakers and banking industry lobbyists have been pushing for that limit to be increased or suspended.

“I think that lifting the?.?.?.?cap is a good move,” Elizabeth Warren, the Democratic senator from Massachusetts, told CBS on Sunday. “Is it $2mn? Is it $5mn? Is it $10mn? Small businesses need to be able to count on getting their money to make payroll, to pay the utility bills. Non-profits need to be able to do that,” she added.