Federal Reserve Chair Jerome Powell stressed the importance of strong capital buffers for a resilient banking system, as evident from the failures of Silicon Valley Bank and two other midsize banks in March and May.
While speaking Thursday at an economic and financial stability conference in Madrid, Powell said regulators will turn lessons learned from the U.S. bank failures into strengthened supervision and regulation.
“The events of the past couple of months would have been much more difficult to manage had the largest banks been undercapitalized or illiquid,” he said.
