Yellen Advocates for Tailored Banking Regulations

WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen emphasized the need to adapt banking regulations according to institution activities at the American Bankers Association annual meeting in New York. She acknowledged the importance of avoiding excessive compliance burdens while expressing her strong support for robust capital requirements.

Yellen noted that these strong capital requirements, established after the 2007-2009 financial crisis, played a crucial role in helping the U.S. economy withstand the challenges posed by 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 stated.