WASHINGTON: The US Federal Reserve called for greater banking oversight while admitting to its own failures in a widely-anticipated report published on Friday into the collapse of Silicon Valley Bank last month.
"Following Silicon Valley Bank's failure, we must strengthen the Federal Reserve's supervision and regulation based on what we have learned," Federal Reserve vice chair for supervision Michael Barr wrote in a statement accompanying the report. Barr said the Fed will look at strengthening banking supervision to ensure it can more quickly identify risks and vulnerabilities like those that arose at SVB.
Lawmaker Patrick McHenry, who chairs the Republican-controlled House Financial Services Committee, welcomed some aspects of Barr's report, while criticising its calls for greater regulation. Following the release of Barr's report, Fed chair Jerome Powell said he welcomed the"self-critical" look at SVB's collapse.