Janet Yellen will signal further US government backing for deposits at smaller American banks if needed, a shift that seeks to protect parts of the country’s banking system struggling in the recent financial turmoil.
Amid mounting evidence that panicked depositors are pulling savings out of regional banks, the US Treasury secretary will say guarantees offered to all depositors at the failed Silicon Valley Bank could be replicated at other institutions if needed.
“The steps we took were not focused on aiding specific banks or classes of banks,” Yellen is expected to say in a speech to the American Bankers Association on Tuesday.
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