Yellen committed to protecting bank deposits

This article was last updated on March 21, 2023

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Yellen committed to protecting bank deposits

U.S. Treasury Secretary Janet Yellen is set to address the American Bankers Association conference and will acknowledge the recent stabilization of the U.S. banking system due to strong regulatory actions.

However, she will also emphasize the need for further measures to protect bank depositors, especially if smaller institutions suffer deposit runs that pose a risk of contagion. Yellen will highlight the government’s commitment to ensuring the safety of depositors’ savings and the banking system and will note that recent actions have strengthened public confidence in the system.

She will mention that further actions may be necessary if smaller institutions face deposit runs that could spread. Yellen did not provide specific details on further actions, but some banking groups have called for temporary universal guarantees on all U.S. bank deposits, while others oppose such measures. Yellen will also highlight the importance of maintaining a diverse banking system to support the U.S. economy.