Yellen: We do not intend to insure all bank deposits

In her speech at the US Senate on the 2024 fiscal year budget proposal, US Treasury Secretary Janet Yellen emphasized that their priority is to protect the health of the US economy, and reminded that they learned about the problems that could have an impact on the banking system and economy with the collapse of two banks two weeks ago.

Talking about the steps they took to strengthen confidence in the US banking system in the following days, Yellen reiterated her statements that the US banking system is sound.

Yellen pointed out that the fiscal year 2024 budget proposed by President Joe Biden demands the necessary resources in line with the country’s priorities.

Answering questions from senators, Yellen said that they do not intend to insure all uninsured bank deposits, and that they are not working on comprehensive insurance or deposit guarantees.

Yellen previously threatened smaller US banks under had said they were ready to take further action to protect depositors.

Yellen stated that they are focused on stabilizing the banking system and increasing the public’s trust in the system, adding that it can be discussed in the coming days whether the deposit insurance limit of 250 thousand dollars is the right level.