US Treasury Secretary Janet Yellen said on Thursday that a review of bank regulation and supervision in the wake of the fall of Silicon Valley Bank and Signature Bank is necessary to ensure that current risks to the banking system are addressed.
In preparatory remarks for an expected speech before the National Association for Business Economics, Janet Yellen also called for stricter regulation of the shadow banking sector, known as “shadow banking,” including hedge funds or even crypto assets.
Continuing the work done after the financial crisis of 2008
Janet Yellen said the relaxation of supervision since 2018 on banks with less than $250 billion in assets needed to be reviewed. “Any time a bank fails, there is cause for great concern. 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 steps accordingly,” she said.
Regulatory reforms implemented after the 2008 financial crisis helped the US financial system withstand shocks, including the pandemic, it added. “But the failure of two regional banks this month shows that our task is not done,” said Janet Yellen.
He said it was important for US regulators to consider whether current supervisory and regulatory regimes “are adequate for the risks banks face today.” “We must act to address these risks if necessary,” she emphasized.
Source: BFM TV
