WASHINGTON, April 10 (Reuters) – The U.S. banking system stays sturdy and resilient, however American officers will proceed working with overseas counterparts to bolster monetary resilience after latest financial institution failures, U.S. Treasury Undersecretary Jay Shambaugh stated on Monday.
Shambaugh stated latest financial institution failures and developments have been very totally different from these of the 2008 world monetary disaster, which centered on credit score threat, however regulators have been working exhausting to shore up confidence in liquidity each at dwelling and overseas.
Shambaugh, talking on the Brookings Establishment suppose tank forward of this week’s conferences of the Worldwide Financial Fund and World Financial institution, stated the general monetary system was additionally a lot better regulated, higher capitalized and extra liquid than throughout the earlier disaster.
He stated U.S. officers would work intently with different international locations to speak about their insurance policies and any spillovers that might materialize, and the influence on rising markets and low-income international locations, however stated baseline forecast nonetheless known as for continued development within the world economic system.
“Current occasions have in some sense highlighted among the draw back dangers that exist, however they have not actually essentially altered the general image of our baseline,” he stated.
Work will proceed with worldwide companions to extend monetary resilience, he stated, including that latest occasions have been a reminder to finish any unfinished regulatory enterprise and “restore and repair any cracks within the regulatory perimeter.”
Reporting by Andrea Shalal; Modifying by Chris Reese and Jonathan Oatis
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