She said federal, state and local officials should
increase their outreach to shore up confidence in regional
banks, adding, "The reality is there's always trust issues with
government, particularly in the minority community."
(Reporting by Andrea Shalal in Washington; Writing by Costas
Pitas; Editing by Katharine Jackson and Paul Simao)
(Adds comment from U.S. Hispanic Chamber of Commerce board
member)
By Andrea Shalal
WASHINGTON, March 21 (Reuters) - The U.S. Treasury is
continuing to monitor the health of mid-sized and regional banks
and is considering what steps can be taken to further strengthen
the country's financial stability, Deputy Treasury Secretary
Wally Adeyemo said on Tuesday.
Adeyemo said "decisive action" taken by the Treasury,
Federal Reserve and the Federal Deposit Insurance Corporation to
protect depositors in Silicon Valley Bank and Signature Bank and
ensure liquidity for other banks had stabilized the banking
system, but a review of the banks' failures was in order.
"It's ... important that we review the failures of the two
banks in question to ensure we have a set of rules and
procedures for the banking system that continues to protect our
economy and depositors across the country," Adeyemo said at an
event hosted by the U.S. Hispanic Chamber of Commerce.
"We of course continue to monitor the current situation and
consider what steps can be taken to further strengthen America's
financial stability," he said, without elaborating.
Adeyemo underscored the importance of small- and
medium-sized community banks and minority-owned depository
institutions for communities of color, given their strong track
record in reaching underserved communities, and said the Biden
administration was committed to protecting these institutions.
"We know that smaller banks - those that would have been at
greatest risk absent the steps we took - play a critical role in
providing access to capital in Hispanic communities and other
communities of color," he said.
Alice Rodriguez, who retired from JP Morgan Chase in
September and is the immediate past chair of the U.S. Hispanic
Chamber of Commerce, welcomed the public support for community
banks expressed by Adeyemo and Treasury Secretary Janet Yellen
during separate comments to bankers in Washington.
"It's really important - in order for minorities not to
get really constrained on capital - for these institutions to
continue to serve them. If the banks have challenges with
outflows, they're not going to be able to serve those
communities," Rodriguez told Reuters after a private meeting
with Adeyemo and U.S. regional leaders attending the Hispanic
business event.
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