Barr: Single bank's balance sheet doesn't change the fact that US banking system is strong

In an oblique reference to the New York Community Bancorp (NYCB), Federal Reserve (Fed) Vice Chairman of Supervision Michael Barr said today that the disappointing balance sheet of a single financial institution does not change the fact that the US banking system US, overall, remains strong.

In a speech during an event at the National Association for Business Economics (NABE), Barr said he saw no signs of a problem with the sector's liquidity, but that he was monitoring conditions closely. In particular, the director cited “pockets of risk” in areas such as the commercial real estate market. In any case, the general picture is better than what was observed last spring in the Northern Hemisphere, when at least three regional banks failed, according to him.

FOMC

The vice president of supervision at the Federal Reserve (Fed) said that the Federal Open Market Committee (FOMC) is expected to begin more in-depth discussions on the asset balance sheet soon.

In a speech during the event, the director stated that the Fed, at this moment, implements monetary policy with plenty of reserves in the system, despite the continuous reduction of the balance sheet. “This process has operated smoothly,” guaranteed Barr.