Fed reveals stability and reliability of American banking system
MOSCOW, March 22 – RIA Novosti. The report said the US banking system is robust and resilient, but recent developments may put pressure on economic activity. Press release Federal Reserve System (FRS).
On March 10, regulators in the state of California closed Silicon Valley Bank, one of the twenty largest commercial banks in the United States. This was the largest bank failure in the United States since the 2008 financial crisis. The collapse of the SVB was associated with a rise in the Fed’s key rate, which led to the depreciation of assets on the balance sheets of many financial institutions. It was also announced that crypto-focused bank Silvergate would be shut down on March 8, and a similar New York-based Signature Bank on March 12.
“The US banking system is robust and resilient. Recent developments are likely to tighten credit conditions for households and businesses, as well as put pressure on economic activity, hiring and inflation,” the statement said.
The regulator adds that the scale of the consequences of the situation is uncertain.
Former Lehman Brothers banker: 50 more US banks could fail
Source: Ria
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