© Reuters. U.S. Treasury Secretary Janet Yellen testifies before a U.S. House Ways and Means Committee hearing on President Joe Biden’s fiscal year 2024 Budget Request on Capitol Hill in Washington, U.S., March 10, 2023. REUTERS/Evelyn Hockstein
WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen met with officials from the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency on Friday to discuss Silicon Valley Bank developments, according to a statement from Treasury. Yellen expressed “full confidence in banking regulators to take appropriate actions in response and noted that the banking system remains resilient and regulators have effective tools to address this type of event.”
U.S. Treasury Secretary Janet Yellen expressed her confidence in global regulators tasked with monitoring the financial sector when she spoke to the press after meeting with the Swiss Bank for International Settlements (SVB) on Wednesday.
Yellen, who has held the position of Treasury Secretary since January 2021, was in Switzerland to meet with leaders of the BIS and the global financial regulator. The meeting also included the Governors and Chief executive officers of the central banks of France, Germany and Japan.
In a brief statement following the meeting, Yellen emphasized the importance of international banking regulation and the role the BIS and the global regulators have in monitoring the sector.
“As I outlined during my confirmation hearing, I believe that global banking regulatory coordination is essential to ensuring a resilient, transparent and well-functioning international financial system,” Yellen said in her statement.
She added that she was confident that the BIS and the global regulators “are working hard to make progress on key areas of financial regulation, including on banking capital and liquidity, global regulatory reforms and encouraging digitalization efforts.”
In her remarks, Yellen also noted the importance of digitalization and technological innovation in the banking sector.
“The effective use of digital technology can help make the financial system more efficient, improve the quality of service for customers and, ultimately, increase financial access,” she said.
Yellen concluded her statement by expressing her “confidence in the regulatory role of the BIS going forward.”
The meeting was the first time Yellen has faced the press since taking office as Treasury Secretary and provides a hint that the Biden Administration intends to continue Obama-era policies of working to strengthen global financial regulators.