STORY: In prepared remarks to an American Bankers Association conference, Yellen said government steps taken in recent days to protect uninsured deposits in two failed banks and create new Federal Reserve liquidity facilities have shown a "resolute commitment to take the necessary steps to ensure that depositors’ savings and the banking system remain safe."
Yellen, speaking more than a week after the Federal Deposit Insurance Corp (FDIC) closed the failing Silicon Valley Bank SIBV.O and Signature Bank SBNY.O, said the "decisive and forceful" actions were strengthening public confidence in the U.S. banking system and protecting the American economy.
"The steps we took were not focused on aiding specific banks or classes of banks. Our intervention was necessary to protect the broader U.S. banking system," Yellen said in the remarks released by the Treasury.
"And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion," she added.
She said she believed the actions by the FDIC, the Federal Reserve and the Treasury had reduced the risk of further bank failures that would have imposed losses on the bank-funded Deposit Insurance Fund.
Yellen did not provide details on what further actions may be warranted.