U.S officials are looking at ways to temporarily expand Federal Deposit Insurance Corp. (FDIC) coverage to all deposits, Bloomberg News reported.

U.S. Treasury Department staff are studying whether federal regulators have enough emergency authority to insure deposits above the current $250,000 cap on accounts without the consent of a deeply divided Congress, the Monday report said, citing people familiar with the matter.

One legal framework that is being looked at for expanding FDIC insurance would use the Treasury Department's authority to take emergency action and lean on the Exchange Stabilization Fund, the report added.

Authorities do not see such a move as a necessity yet, especially after regulators took steps this month to help banks keep up with any demands for withdrawals, but they are still developing a strategy out of due diligence in case the situation worsens, according to Bloomberg.

"Due to decisive recent actions, the situation has stabilized, deposit flows are improving and Americans can have confidence in the safety of their deposits," a U.S. Treasury spokesperson told Bloomberg.

The appeal for broader government action is being sought by a coalition of banks arguing it is needed to stave off a financial crisis. As well, some in Washington are concerned about the health of midsize banks after three banks have now failed — Silicon Valley Bank, Signature Bank and Credit Suisse — and First Republic Bank struggles to avoid the same fate.

Share of First Republic are down 90% since the start of the month.

"We will use the tools we have to support community banks," White House spokesman Michael Kikukawa told Bloomberg. "Since our administration and the regulators took decisive action last weekend, we have seen deposits stabilize at regional banks throughout the country and, in some cases, outflows have modestly reversed."

The Treasury Department has the authority to take emergency action via the Exchange Stabilization Fund, which is typically used to buy and sell currencies and to provide financing to foreign governments. Created in the 1930s and the only fund under the full authority of the Treasury, the Federal Reserve has used the Exchange Stablization Fund as a backstop for emergency lending in recent years.

The current banking crisis is the first one the U.S. government has faced since the 2010 passage of the Dodd-Frank Act reforms.

Treasury had no immediate comment on the report when contacted by Reuters.