WASHINGTON (Reuters) – US Treasury Secretary Janet Yellen said banking regulation and supervisory rules need to be reviewed following the bankruptcies of Silicon Valley Bank and Signature Bank to ensure current risks are taken into account. of the banking system.
In a speech to the National Association for Business, Yellen also called for increased regulation of the growing, so-called “shadow” non-bank sector, which includes money market funds, hedge funds and cryptocurrencies.
According to Yellen, the reduction in bank capital requirements introduced in 2018 should be reviewed and supervision strengthened for small and medium-sized banks with assets below $250 billion.
“Every time a bank fails, it’s a cause for serious concern. Regulatory requirements have been relaxed in recent years. I believe it is appropriate to assess the impact of these deregulatory decisions and take the necessary actions,” Yellen said.
The Treasury secretary added that regulatory reforms enacted after the 2008 financial crisis have helped the US financial system weather shocks, including the Covid-19 pandemic.
“But the failures of two regional banks this month show that our work is not done yet,” Yellen said, adding that the financial system is significantly stronger than it was 15 years ago.
(Translated by Chiara Scarciglia, editing Andrea Mandalà)