According to Deputy Treasury Secretary Wally Adeyemo on Tuesday, the US Treasury keeps an eye on the condition of small and regional banks and is thinking about what may be done to further bolster the country’s financial stability.

Adeyemo claimed that although the financial system had been stabilised by “decisive action” taken by the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation to safeguard depositors in Silicon Valley Bank and Signature Bank (NASDAQ:SBNY) and maintain liquidity for other banks, a review of the firms’ failings was necessary.

Adeyemo stated at a gathering sponsored by the U.S. Hispanic Chamber of Commerce, “It’s essential that we review the failures of the two banks in question to ensure we have a set of rules and procedures for the banking system that continues to protect our economy and depositors across the country.

Without going into greater detail, he said, “We of course, continue to monitor the current situation and examine what steps might be taken to further strengthen America’s financial stability.

Given their successful track record of serving underserved populations, Adeyemo emphasised the significance of small- and medium-sized community banks and minority-owned depository institutions for communities of colour and stated that the Biden administration was dedicated to protecting them.

“We know that smaller banks play a key role in providing access to financing in Hispanic communities and other communities of color,” he added. “Those who would have been at greatest risk absent our steps.