US TREASURY SEC. YELLEN: BANKING SYSTEM HAS STABILIZED IN PAST FEW WEEK

US Treasury Secretary Janet Yellen said on Friday that the US banking system has stabilized during the last few weeks. She added they continue to be vigilant and monitor conditions closely. She spoke at the Financial Stability Oversight Council Meeting, which will vote on two proposals: a framework for financial stability risk identification, assessment, and response; and a interpretive guidance on nonbank financial company designations.

“Last month, the government took necessary actions to decisively manage the fallout from the failure of two regional banking institutions. Our goal was to mitigate the serious risk of contagion and protect the broader banking system and economy. The situation has stabilized in the past few weeks. And our banking system remains sound, with strong capital and liquidity positions. Of course, we continue to be vigilant and monitor conditions closely.”

“Still, these developments have reminded many of the fear and uncertainty that can accompany financial disruptions. For all in this room, I am certain that the developments underscored the importance of our work on financial stability: to continue to improve the resilience of a financial system that can support the economy through both good and bad times.”