The situation in the American banking sector is “stabilizing”, according to the American Minister of Finance Janet Yellen after bankruptcy Silicon Valley Bank (SVB) And her Signature bankthat are shaking up the sector all over the world.

“The situation is stabilizing. And the US banking system remains stable,” the Secretary of the Economy and Treasury said this morning (local time). Joe Biden speaking to an audience of bankers, according to excerpts from her talk at the American Bankers Association (ABA) annual symposium in Washington.

The facility, set up a week ago by the US central bank (Fed) to lend to banks to prevent their collapse, is “working as intended, providing liquidity to the banking system,” and “the withdrawal of funds from regional banks has stabilized,” Janet Yellen emphasizes.

Waves of run-ins led to the liquidation of Silvergate Bank, a small regional bank that became the main destination of the cryptocurrency chain less than two weeks ago, and then SVB, which was taken over by the Guarantee Service. deposits (FIDC). Signature Bank, the country’s 21st bank, also closed.

The US authorities immediately announced a series of measures designed to reassure individuals and businesses of the stability of the US banking system, primarily by promising that customers of SVB and Signature Bank would be able to withdraw all their deposits.

“Our intervention was necessary to protect the entire American banking system. And such actions may be justified if small institutions suffer from massive withdrawals of funds that pose a risk of infection,” the minister is also expected to say.

First Republican Bank in the first place is under consideration.

The Fed, for its part, announced on Thursday that it had loaned nearly $12 billion to US banks over the course of several days under a facility set up on March 12 to enable them to respond to their clients’ withdrawal requests.

^{Source: APE-MEB, AFP.}