Skip to content
Sign In Subscribe
Reuters — Economy — Monetary Policy — Finance — Investment — Economics

SVB collapse puts Fed's faith in a strong, low-risk financial system to the test

The US Federal Reserve rolled out a crisis playbook to keep the financial system stable after a bank failure. Banks will be allowed to borrow unlimited amounts from the Fed. FDIC will make whole all depositors, even those with accounts above the limit.

1 min read
  • SVB collapse puts faith in a strong, low-risk financial system to the test.
  • Fed rolled out crisis playbook to keep financial system stable.
  • Banks will now be allowed to borrow essentially unlimited amounts from the Fed.
  • Pledge to make whole all depositors, even those with accounts above the FDIC's standard $250,000 limit.
  • Fed's aggressive rate increases took rates from near zero percent to more than 4.5%.
SVB collapse puts Fed's faith in a strong, low-risk financial system to the test
Earlier this month the U.S. Federal Reserve in a report to Congress gave what has become a standard reassurance: Banks were strong and the overall financial system in solid shape.
Reuters

More in Monetary Policy

More in Economy

More from Reuters

Latest