OMB director: US banking system is ‘resilient’ amid Silicon Valley Bank collapse

Shalanda Young, director of the White House Office of Management and Budget (OMB), on Sunday called the U.S. banking system “resilient” as it weathers the recent Silicon Valley Bank collapse.

Young on CNN’s “State of the Union” deferred details to Treasury Secretary Janet Yellen, but stressed that the administration is closely watching the issue.

“What I will say about the banking system overall is it is more resilient, it has a better foundation than before the financial crisis. That’s largely due to reforms put in place after the financial crisis. Our Treasury secretary is at the helm and working diligently with regulators,” Young said.

The Silicon Valley Bank was shut down by regulators on Friday, the second-largest bank collapse in U.S. history, after the 2008 financial crisis.

The major bank’s abrupt failure has rocked the tech industry. Silicon Valley executives announced Thursday plans to raise as much as $1.75 billion in capital to shore up the institution’s books, prompting customers to pull their money from the bank. California’s Department of Financial Protection and Innovation then stepped in.

“What I will say is after the financial crisis, the reforms put in place have given regulators more tools. And our system is more resilient and the foundation stronger because of it,” Young underscored.

Yellen on Sunday also said the department is working to ensure Americans remain confident in the country’s banking infrastructure.