The Ministry of Finance has announced the need to revise the rules of banking regulation and supervision

Treasury Secretary Janet Yellen said on Thursday that following the collapse of Silicon Valley Bank and Signature Bank, regulations and rules for supervising banks needed to be reviewed to ensure they take into account the existing risks facing the banking system.In speeches prepared for the National Business Economics Association, Yellen also called for increased regulation of the growing non-banking sector, or “shadow banking sector.”Yellen said the reduction in capital requirements for banks in 2018 should be reconsidered, and the supervision of small and medium-sized banks with assets below $250 billion should be further reviewed.“Every time a bank fails, it is a cause for serious concern. Regulatory requirements have been relaxed in recent years. I think it is appropriate to assess the impact of these deregulation decisions and to provide the necessary responses,” she said.Regulatory reforms introduced since the 2008 crisis have helped the U.S. financial system weather shocks, including the COVID-19 pandemic, according to the Treasury Secretary.“But the collapse of two regional banks this month shows that our job is not yet done,” Yellen said, adding that the financial system is significantly stronger than it was 15 years ago. .”Perhaps this is best illustrated by the fact that this month we have seen relative stability in the banking sector as a whole, although concerns about specific institutions have increased,” she said.However, Yellen said it is important for regulators to consider whether existing supervisory and regulatory regimes are “fit for the risks banks face today. If necessary, we must take measures to deal with these risks.Yellen echoed comments from last week that the Treasury, Federal Reserve and Federal Deposit Insurance Corporation are ready to use again the same mechanisms they used to protect depositors during the Silicon Meltdown. Valley Bank and Signature Bank.“And we will be ready to take additional measures if necessary,” she added.