Yellen says not willing to allow contagious bank runs to develop

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Yellen says not willing to allow contagious bank runs to develop
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U.S. Treasury Secretary Janet Yellen on Monday said deposit outflows from small and medium-sized banks were diminishing, but she was watching the situation closely and was 'not willing to allow contagious runs to develop' in the U.S. banking system.

U.S. Treasury Secretary Janet Yellen delivers remarks after receiving the Paul A. Volcker Award at the National Association for Business Economics 39th Annual Economic Policy Conference in Washington, U.S., March 30, 2023. REUTERS/Leah Millis

Yellen told reporters after an event at Yale University that confidence in the banking system was strengthened by actions taken by the Treasury, Federal Reserve and Federal Deposit Insurance Corp after the failures of Silicon Valley Bank and Signature Bank.

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