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The US Federal Reserve calls for adopting new rules to avoid a banking collapse 2023-04-29 01:51 Shafaq News / The US Federal Reserve urged, on Saturday, to renew a set of rules for medium-sized banks to avoid the problems that led to the collapse of the Silicon Valley Bank, according to a report by the Wall Street Journal. "The supervisors did not fully appreciate the scale of vulnerabilities in the banking sector as the Silicon Valley problem began to get complicated," said Michael Barr, vice chair of the Federal Reserve's oversight board. Barr added, "The Reserve, when it sensed that there were some complications in Silicon Valley, did not take sufficient steps to ensure that the bank fixed these problems quickly enough." "The mistakes made by the Fed regulators were driven in part by changes that generally eased rules for medium-sized banks," he said. "These changes hampered effective oversight by reducing standards, increasing complexity, and promoting a less assertive supervisory approach," Barr continued.
