US regulators are ready to take further action to protect the banking system if needed, US Treasury Secretary Janet Yellen said.
“Certainly, we will be prepared to take additional action if necessary,” said Yellen, who was speaking before a congressional subcommittee.
The US official’s remarks come amid scrutiny of how regulators have responded to a series of bank failures and growing concerns about the stability of the financial system.
Both Yellen and Federal Reserve Chairman Jerome Powell have argued since the collapse of Silicon Valley Bank (SVB) in early March this year that regulation needs to be tightened, while stressing that the banking system is sound.
U.S. authorities are still on the lookout for signs of banking instability as investors await clarification on regulators’ willingness to guarantee bank deposits after sudden outflows contributed to the collapse of several regional banks Americans.
Speaking to the American Bankers Association on Tuesday, Yellen said regulators were ready to implement the same measures they took in the aftermath of the collapse of SVB and Signature Bank.
With MAP
