WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen said on Tuesday that it was important to continue tailoring the complexity and severity of banking regulations to the activities of institutions to avoid undue compliance burdens, but said she is predisposed to robust capital requirements. Yellen, asked about a proliferation of regulatory burdens from multiple agencies […]
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Yellen says tailoring bank rules helpful, but strong capital requirements important
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WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen said on Tuesday that it was important to continue tailoring the complexity and severity of banking regulations to the activities of institutions to avoid undue compliance burdens, but said she is predisposed to robust capital requirements.
Yellen, asked about a proliferation of regulatory burdens from multiple agencies at an American Bankers Association annual meeting in New York, said that strong capital requirements put in place after the 2007-2009 financial crisis helped the U.S. economy weather the COVID-19 pandemic.
“Knowing how important it is to have a healthy banking system in order to have a healthy and resilient economy, I guess my predilection is very much toward robust capital liquidity, to make sure that we do have a banking system that can support the economy that’s safe and sound,” Yellen said.
(Reporting by David Lawder; Editing by Leslie Adler)