US Treasury sees continued world development regardless of strains in banking sector

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By Andrea Shalal

WASHINGTON (Reuters) – The U.S. banking system stays robust and resilient, however American officers will proceed working with overseas counterparts to bolster monetary resilience after current financial institution failures, U.S. Treasury Undersecretary Jay Shambaugh mentioned on Monday.

Shambaugh mentioned current financial institution failures and developments have been very totally different from these of the 2008 world monetary disaster, which centered on credit score danger, however regulators have been working arduous to shore up confidence in liquidity each at house and overseas.

Shambaugh, talking on the Brookings Establishment suppose tank forward of this week’s conferences of the Worldwide Financial Fund and World Financial institution, mentioned the general monetary system was additionally a lot better regulated, higher capitalized and extra liquid than in the course of the earlier disaster.

He mentioned U.S. officers would work carefully with different international locations to speak about their insurance policies and any spillovers that might materialize, and the affect on rising markets and low-income international locations, however mentioned baseline forecast nonetheless known as for continued development within the world financial system.

“Latest occasions have in some sense highlighted a number of the draw back dangers that exist, however they have not actually basically altered the general image of our baseline,” he mentioned.

Work will proceed with worldwide companions to extend monetary resilience, he mentioned, including that current occasions have been a reminder to finish any unfinished regulatory enterprise and “restore and repair any cracks within the regulatory perimeter.”

(Reporting by Andrea Shalal; Modifying by Chris Reese and Jonathan Oatis)

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