The current troubles at New York Community Bancorp Inc. will not be an indication of systemic issues within the U.S. banking system, a high Federal Reserve official stated Wednesday.
“A single bank missing its revenue expectations and increasing its provisioning does not change the fact that the overall banking system is strong, and we see no signs of liquidity problems across the system,” stated Fed Vice Chair for Supervision Michael Barr, in a speech to a gathering of the National Association of Business Economics in Washington.
Barr stated there have been “a few patches and pockets of risk” within the sector, together with the worth of workplace industrial actual property in sure central enterprise districts, Barr stated.
NYCB inventory
NYCB,
plunged earlier in February after the financial institution posted a shock quarterly loss and disclosed hassle with its industrial real-estate loans.
Shares of regional banks stay beneath strain this week after the surprisingly robust shopper inflation knowledge launched Tuesday.
Source web site: www.marketwatch.com
