US Financial Stability Board Sees Banking System Strong By Reuters

WASHINGTON (Reuters) – The Financial Stability Oversight Board agreed on Friday that the U.S. banking system remains “strong and resilient,” the bank said, despite pressures on some institutions, including the U.S. Treasury.

This is the latest statement issued by the US agency to calm the tension of the markets and depositors in banks.

In a readout of the closed-door meeting chaired by Treasury Secretary Janet Yellen, the department said FSOC participants heard a presentation on market developments by staff from the Federal Reserve Bank of New York.

“The board discussed current conditions in the banking sector and noted that while some institutions are under pressure, the US banking system remains strong and resilient,” the Treasury Department said in a statement.

The video meeting came as markets continued to swing amid fears that the banking crisis triggered two weeks ago by the failure of Silicon Valley Bank and Signature Bank could fester, spreading to smaller banks.

The panel of financial regulators, led by Yellen and made up of the heads of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency, the Securities and Exchange Commission, and other regulatory agencies, met. The time is March 12th.

Friday’s FSOC meeting came as fears of a global banking contagion once again sent European bank stocks falling sharply, with Deutsche Bank (ETR:) and UBS (SIX:) have been weighed down by concerns that regulators and central banks have yet to contain the worst shock to the sector since the 2008 financial crisis.

However, on Wall Street, stocks rebounded after an earlier sell-off as three regional Fed chiefs said in separate appearances that their confidence that the banking system was not facing a liquidity crunch was what led to the decision to apply the 25 basis point rate. Wednesday high.

(Reporting by David Lauder, Editing in Spanish by Aida Pelaez-Fernandez)