US Treasury Secretary Janet Yellen has said the government is prepared to intervene if smaller institutions suffer deposit runs that could risk contagion, weeks after the collapse of three banks.
Speaking at the American Bankers Association, Yellen defended the government's decisive actions to protect the broader US banking system, maintain the important role of small and mid-size lenders, and ensure the ongoing health and competitiveness of the US's community and regional banking institutions.
The government intervened to guarantee deposits at Silicon Valley Bank and Signature Bank, and the Federal Reserve launched a new way to help lenders cover withdrawals. Congress will hold a meeting on March 29 to investigate the collapses.
