The US is also getting ready follow in Europe's footsteps and purchase stakes in financial institutions.
"We are designing a standardised programme to purchase equity in a broad array of financial institutions," said Neel Kashkari, the treasury official in charge of the US government's $700bn bail-out package.
Monday's other key developments included:
The UK government said it would inject up to £37bn of taxpayers cash into Royal Bank of Scotland, Lloyds TSB and HBOS
US shares, tracking earlier gains in Europe and Asia, rocketed 11% as investors welcomed fresh efforts by global leaders to end the recent financial turmoil
The world's major central banks said they would offer financial institutions an unlimited amount of short-term dollar loans to help stem the crisis
The Icelandic stock exchange said share trading would remain suspended until Tuesday because of continuing "unusual market conditions".
French President Nicolas Sarkozy said France would offer up to 40bn euros to provide banks with the financing they needed via a public company in which the state would the only shareholder.
"This is a massive engagement," he said.
He added that no financial institution would be allowed to collapse.
German Chancellor Angela Merkel said that the measures being taken would only work if they were accompanied by more robust regulation that will curb "market excesses."
"The package passed by the German government will serve the financial system and ought to serve to protect the citizens and not just serve to protect the banking system," she said.
Unlike France, Germany and Britain, Spain's Prime Minister Jose Luis Rodriguez Zapatero said that Spain did not need to take stakes in any banks because its banks were solvent.
However, last week the Spanish government announced the creation of a 30bn euro fund to buy assets from Spanish banks to help stabilise the lending industry and unfreeze credit.
At present banks are reluctant or unable to loan cash to fellow financial institutions due to fears about whether the money will be paid back.
It is this lending between banks that traditionally lubricates the banking system, freeing up cash for lending to private individuals and other firms.
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