15 March 2023
US BANK FAILURES: THE EMERGING REGULATORY FOCUS
On March 12, the US Department of the Treasury, Federal Reserve Board (FRB), and Federal Deposit Insurance Corporation (FDIC) announced measures to protect all deposits under an emergency lending program and for the FDIC to complete the resolutions for Silicon Valley Bank (SVB) and Signature Bank. These actions were taken in consultation with President Biden and ordered using the ‘systemic risk’ exception. In a speech at the White House, the President stated that he would do “whatever is needed” to ensure the banking system remains strong. Consequently, regulatory changes are expected, and bank management needs to be asking the right questions to be prepared.