Yellen on Watch for Banks Tightening Credit After SVB Meltdown
- Treasury chief testifies at Senate Banking Committee
- Yellen says regulators need to examine what happened with SVB
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Treasury Secretary Janet Yellen said that her department is monitoring for a potential contraction in credit in the US following the collapse of Silicon Valley Bank, which sparked the danger of contagion across the banking system.
Speaking at a Senate Finance Committee hearing Thursday, Yellen told lawmakers that she had first heard of problems with SVB just one day before it was put into Federal Deposit Insurance Corp. receivership last Friday. Noting the bank’s high reliance on uninsured deposits for funding, she said regulators must “reexamine our rules and supervision and make sure they’re appropriate.”