March 28, 2023 15:35 GMT
MNI BRIEF: Barr Says Fed Monitoring Rate Risk At Banks
The Federal Reserve is monitoring the risks that higher interest rates pose to the balance sheets of banks after losses on a large portfolio of Treasuries helped precipitate the collapse of Silicon Valley Bank, the Fed’s vice chair of supervision Michael Barr told Congress Tuesday.
“We are monitoring the financial system, monitoring the banking system, we’re looking at interest rate risk and liquidity risk across the banking system,” Barr said. “The banking system is sound and resilient. Depositors are safe. Most banks are highly effective in managing interest rate risk and liquidity risk.”
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