The emergence of more weaknesses and vulnerabilities in the United States banking industry is possible amid the recent crisis in the sector, according to the head of the International Monetary Fund (IMF).
“It doesn’t mean that we have a free pass. It doesn’t mean that there wouldn’t be more vulnerabilities to come,” IMF Managing Director Kristalina Georgieva, said on Monday during an address at the 2023 Milken Institute Global Conference in the US state of California.
Georgieva’s comments came after the troubled First Republic Bank was closed by US regulators earlier Monday.
US President Joe Biden later said federal regulators’ actions are keeping the US banking system “safe and sound.”
Georgieva said the IMF welcomed the swift action by American regulators but warned that the strength of the global financial system is tested, yet there are hurdles in global markets.
About the recent US banking crisis, which saw quick the demise of four banks, Georgieva said there are “new regulatory and disclosure thinking around how we deal with this.”
CURRENTPH NEWS SERVICE