WASHINGTON (AP) — Federal Reserve Chair Janet Yellen says recent initiatives by the Fed and other regulators to help banks make it through periods of financial stress are important, but they may still need to be strengthened.
Yellen believes current rules governing how much capital banks must hold in case of losses do not address all threats. She said that the Federal Reserve staff is actively considering what additional measures may be needed.
Bank regulators need to focus on this area, Yellen says, since bank runs generated at shaky firms were the primary engine that triggered the 2008 financial crisis.
Yellen’s comments Tuesday came in an address delivered by video to a financial markets conference sponsored by the Federal Reserve’s regional bank in Atlanta.