By Andrea Shalal
WASHINGTON (Reuters) – The U.S. Treasury is continuing to monitor the health of mid-sized and regional banks and is considering what steps can be taken to further strengthen America’s financial stability, Deputy Treasury Secretary Wally Adeyemo said on Tuesday.
Adeyemo said “decisive action” taken by the Treasury, Federal Reserve and the Federal Deposit Insurance Corporation to protect depositors in Silicon Valley Bank and Signature Bank and ensure liquidity for other banks had stabilized the banking system, but a review of the banks’ failures was in order.
“It’s … important that we review the failures of the two banks in question to ensure we have a set of rules and procedures for the banking system that continues to protect our economy and depositors across the country,” Adeyemo said at an event hosted by the U.S. Hispanic Chamber of Commerce.
“We of course continue to monitor the current situation and consider what steps can be taken to further strengthen America’s financial stability,” he said, without elaborating.
Adeyemo underscored the importance of small- and medium-sized community banks and minority-owned depository institutions for communities of color, given their strong track record in reaching underserved communities, and said the Biden administration was committed to protecting these institutions.
“We know that smaller banks – those that would have been at greatest risk absent the steps we took – play a critical role in providing access to capital in Hispanic communities and other communities of color,” he said.
(Reporting by Andrea Shalal in Washington; Writing by Costas Pitas; Editing by Katharine Jackson and Paul Simao)
