US Bank and Supervisory Rules May be too Loose and Require Review, Yellen Says

Originally published on March 30, 2023, by David Lawder for

 U.S. Treasury Secretary Janet Yellen said on Thursday that banking regulation and supervisory rules need to be re-examined in the wake of the Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) failures to ensure current banking system risks are addressed.

In remarks prepared for delivery to the National Association for Business Economics, Yellen also called for stronger regulation of the growing non-bank, or "shadow bank", sector, including money market funds, hedge funds and crypto assets.

Yellen said a 2018 roll-back of bank capital requirements and stronger supervision for smaller and mid-size banks with assets below $250 billion should be re-examined.

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