MADRID, 21 Mar. (EUROPA PRESS) –
The United States Secretary of the Treasury, Janet Yellen, is considering expanding the protection of depositors from other small entities under conditions similar to those of the intervention of Silicon Valley Bank (SVB) and Signature Bank, when the guarantee was increased to 100 % of amounts deposited, against the limit of $250,000.
“The steps we took were not focused on helping specific banks or classes of banks. Our intervention was necessary to protect the American banking system in general,” Yellen said in statements prepared for her speech on Tuesday before the American Bankers Association and that picks up the Bloomberg agency.
In this sense, for the head of the United States Treasury, “similar actions could be justified if the smallest entities suffer deposit leaks that pose a risk of contagion.”
The SVB was intervened on March 10 by the US financial authorities and that weekend the Treasury Department ordered the Federal Deposit Insurance Corporation (FDIC) to guarantee the funds of the entity’s clients even above the insured limit of $250,000.
In her speech on Tuesday, Yellen considers that the situation “is stabilizing” and defends that the US banking system “remains solid.”
“The Fed facility and the discount window are working as planned to provide liquidity to the banking system. Aggregate deposit outflows from regional banks have stabilized,” he said.
