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Post: US Treasury announces ‘stabilized’ situation after SVB bankruptcy

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The U.S. Department of the Treasury is in Washington. archive photo

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.

“As a result of these actions, we see that the outflow of funds from the banking system has stabilized and the situation has calmed down. Of course, we continue to closely monitor what happens,” he told CNN.

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.

Police near the Silicon Valley Bank in Santa Clara, California - RIA Novosti, 1920, 18.03.2023

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Source: Ria

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