Currency Comptroller: Big Banks ‘Need to Be More Resilient’ But ‘System Is Sound and Resilient’

On Friday’s broadcast of CNBC’s “Closing Bell: Overtime,” Acting Comptroller of the Currency Michael Hsu stated that while the banking system “is sound and resilient” and the money that people have in banks is safe, over the medium and long term, “large banks need to be more resilient and more resolvable.”

Co-host Morgan Brennan asked, “I wonder how you think regulations are going to evolve and how quickly, given the fact that, as we’ve just seen with SVB as an example, bank runs, for example, or these crises of confidence can happen very, very quickly in the course of days or even hours, so how quickly can regulations catch up?”

Hsu responded, “I should start off by saying the system is sound and resilient. Depositor’s money, the money is safe. Your money is safe. And that’s because of the things — the actions that banks have taken, the supervisors have taken to ensure that. Medium-to-long-term, I do think that large banks need to be more resilient and more resolvable. We’re going to work through the normal procedures and processes for notice and comment to get there. And that’s something we’re working with the other banking agencies on.”

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