Yellen Says US Banking System Is Sound Amid SVB Crisis

The transcript discusses a bank run at Valley Bank, driven by uncertainty about asset values and a high share of uninsured deposits. The federal government intervened to restore confidence, protect depositors, and mitigate systemic risks, without aiding specific banks or investors. A new Fed lending facility was established to provide liquidity. The US banking system remains sound, despite recent pressures, and current developments differ from the global financial crisis.

What was a key factor that accelerated the bank run at Valley Bank?

• High interest rates

• Government intervention

• Uncertainty about asset value

• Low customer deposits

What was the primary goal of the federal government's intervention during the bank run?

• To aid specific banks

• To protect bank investors

• To mitigate systemic risks

• To increase bank profits

Which two banks were specifically mentioned as having received government intervention?

• Valley Bank and Chase Bank

• SVB and Signature Bank

• Bank of America and Wells Fargo

• Citibank and HSBC

What new facility did the Fed establish to support the banking system?

• A stock market fund

• A lending facility

• A new savings account

• A real estate investment trust

How does the current banking situation differ from the global financial crisis?

• It involves more banks

• It is less severe

• It is caused by different factors

• It has no government intervention