US Treasury Secretary Janet Yellen will suggest on Thursday that reforms to tighten financial regulations are in order, following the collapse of Silicon Valley Bank and Signature Bank, according to her prepared remarks
WASHINGTON (Pakistan Point News / Sputnik - 30th March, 2023) US Treasury Secretary Janet Yellen will suggest on Thursday that reforms to tighten financial regulations are in order, following the collapse of Silicon Valley Bank and Signature Bank, according to her prepared remarks.
"We have made much progress in the past 15 years. But recent events show that, clearly, our work is not done," Yellen said in prepared remarks released prior to her speech at a National Association for Business Economics conference. "These events remind us of the urgent need to complete unfinished business: to finalize post-crisis reforms, consider whether deregulation may have gone too far, and repair the cracks in the regulatory perimeter that the recent shocks have revealed. We must also address new areas of risk."
Yellen noted that "regulatory requirements (had) been loosened in recent years" and an evaluation of the impact was necessary
She added that vulnerabilities in the non-bank sector also needed to be addressed, including in shadow banking, money markets, open-end funds, hedge funds, and digital assets. She noted that regulations did not account for "spillovers" to the rest of the financial system during periods of extreme stress.
