US banking system sound despite turmoil, Yellen says

Name: Silicon Valley Bank collapse stuns tech firms around the world, global operations dismantled
Uploaded: 2023-03-16T16:45:59.000Z
Duration: 2 min 30 s
Description: Silicon Valley Bank collapse stuns tech firms around the world, global operations dismantled

The US Federal Reserve also announced it would make extra funding available to banks to help them meet the needs of depositors, including withdrawals

The consecutive failures of Silicon Valley Bank and Signature Bank are the sector’s biggest casualties since the 2008 financial crisis

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US Treasury Secretary Janet Yellen in Washington, US on Thursday. Photo: Reuters

Agence France-Presse

Published: 12:45am, 17 Mar 2023Updated: 8:47am, 17 Mar 2023

The US banking system remains sound despite market anxiety over the collapse of Silicon Valley Bank (SVB) and Signature Bank, Treasury Secretary Janet Yellen told members of Congress on Thursday.

The consecutive bank failures are the sector’s biggest casualties since the 2008 financial crisis, prompting US authorities to quickly step in to protect depositors.

Amid contagion fears, the US Federal Reserve also announced it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.

Yellen, speaking before the Senate Finance Committee, described the government’s actions as “decisive and forceful”.

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Silicon Valley Bank collapse stuns tech firms around the world, global operations dismantled

“This week’s actions demonstrate our resolute commitment to ensure that our financial system remains strong, and that depositors’ savings remain safe,” she said.