Yellen sees a need to examine bank deregulation made in the US.

The United States Secretary of the Treasury, Janet Yellen, affirmed this Thursday that it is necessary to review the banking deregulation that has been carried out in her country in recent years after the 2008 crisis and adapt it to the new circumstances.

“Regulatory requirements have been relaxed in recent years. I think it is appropriate to assess the impact of these deregulation decisions and take the necessary measures.”, pointed out Yellen at the 39th Annual Conference on Economic Policy of the National Association of Business Economics.

This appreciation, Yellen acknowledged, is derived from the bankruptcy two weeks ago of the Silicon Valley Bank and Signature Bank.

“It is important that we re-examine whether our current supervisory and regulatory regimes are adequate for the risks banks face today and we must act to address these risks if necessary.“said the secretary.

Yellen He returned, however, to insist that despite what happened, it has been seen “relative stability in the broader banking sector this month, even as concerns about specific institutions grew.”

“To be clear, the banking system is significantly stronger than it was before the global financial crisis (…) Today the US banking system is strong, even when it has been under pressure“, said.

As she has done in recent weeks, Yellen also defended the actions of the US government after the bankruptcy.

“We have used important tools to act quickly to prevent contagion and they are tools that we could use again. The aggressive measures we have taken ensure that Americans’ deposits are safe, and we would be prepared to take additional measures if warranted.“, he claimed.

On March 12, the United States regulatory bodies launched a plan to protect the deposits of Silicon Valley Bank (SVB) and Signature Bank after their collapse.

The Treasury Department, the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC) announced that customers would have access to all money deposited in these entities.

The Fed also launched a liquidity line for banks with financing difficulties in order to prevent mistrust from spreading to other entities and so that what happened did not bring about a deeper financial crisis.

Source: EFE