US Treasury: Measures taken after SVB bankruptcy “stabilized” funds outflow from banks
WASHINGTON, April 16 – RIA Novosti. Measures taken by the US authorities in response to the bankruptcy of Silicon Valley Bank “stabilized” the outflow of funds from the banking system and generally calmed the situation, stated US Treasury Secretary Janet Yellen.
California regulators shut down Silicon Valley Bank in March, which has become the largest US bank to go bankrupt since the 2008 financial crisis and the second largest in history. The collapse is associated with a key increase in the value of assets on the balance sheets of many financial institutions.
Yellen stated that banks are more cautious while giving loans and acknowledged that such restrictions could be an alternative to the Central Bank’s interest rate hike in the future to reduce inflation.
“But I don’t yet see anything dramatic enough to materially impact the outlook[for the US economy],” Yellen said.
Biden thought banks in the US were no longer in danger
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