Janet Yellen says US regional banks may merge due to the current banking environment

Yellen endeavored to reassure her G7 Summit counterparts earlier this week, expressing that the American financial system remained stable

The stocks of leading American regional lenders have become increasingly unstable in recent weeks.

Yellen pointed out that a financial institution’s shares’ strain could potentially cause anxiety among uninsured depositors.

Yellen told Reuters that she was not seeing evidence of pressure on smaller community banks, which had a large percentage of insured deposits.

Yellen’s statement that regulators will be open to mergers in the regional banking sector could encourage more consolidation in the industry.

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