U.S. Treasury Secretary Janet Yellen emphasized the importance of tailoring banking regulations to the specific activities of financial institutions, with the goal of reducing unnecessary compliance burdens. Yellen spoke Tuesday at the American Bankers Association’s annual meeting in New York, announcing her intention to maintain strong capital requirements.
Yellen specifically highlighted the benefits of strong capital controls established after the 2007-2009 financial crisis, which she credited with strengthening the U.S. economy’s resilience during the COVID-19 pandemic. He emphasized the critical role of a well-capitalized banking system in ensuring economic health and resilience.
“I recognize that a healthy banking system is critical to a healthy and resilient economy, and to ensure we have a sound banking system that safely supports our economy, I am committed to “We focus on strong capital and liquidity.” .
The Secretary of the Treasury’s statement was in response to concerns about the complexity of regulatory requirements from various government agencies. Their stance suggests a balance between easing regulatory burdens on banks without compromising the safeguards provided by strong capital requirements.
Reuters contributed to this article.
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