MNI BRIEF: Yellen Says U.S. Banking System Is Stabilizing

Treasury Secretary Janet Yellen said Tuesday the U.S. banking system is stabilizing, while Treasury remains committed to ensuring the ongoing health and competitiveness of America's regional banks.

"The situation is stabilizing. And the U.S. banking system remains sound. The Fed facility and discount window lending are working as intended to provide liquidity to the banking system. Aggregate deposit outflows from regional banks have stabilized," she said, according to excerpts of a speech to be delivered to the American Bankers Association.

"Let me be clear: the government’s recent actions have demonstrated our resolute commitment to take the necessary steps to ensure that depositors’ savings and the banking system remain safe," she added. (See: MNI FED WATCH: 25BP Hike Likely Unless Banking Crisis Worsens)