US Banking System Stabilized by US Treasury Announcement
Washington, March 16 – Treasury Secretary Janet Yellen said Thursday at a Senate hearing that the US banking system is stable and depositors’ deposits will not be affected.
California regulators shut down the Silicon Valley Bank (SVB) last week in what was the largest banking failure in the US since the 2008 financial crisis. The collapse of the SVB was found to be linked to an increase in the Federal Reserve’s key interest rate, which sent down the value of assets on the balance sheets of many institutions. Finance. Additionally, on March 8, it was announced that crypto-focused Silvergate Bank would be shutting down, and on March 12, a similar Signature Bank in New York was announced.
As stated by the head of the Ministry of Finance, this week the government took “decisive and strong measures to stabilize (status – ed.) and strengthen public confidence.”
“I can assure the committee members that our banking system remains strong and Americans can rest assured that their deposits will be where they need them when they need them,” the Treasury secretary said.
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