Federal Reserve Bank Chairman Ben Bernanke on Wednesday said stress tests indicate the banking system has gotten “much stronger” since the financial collapse of 2008.
At a conference in Georgia, Bernanke said the tests revealed that all but one major bank with at least $50 billion in assets could withstand a serious economic downturn similar to the one in 2008.
“The results of the most recent stress tests and capital planning evaluations continue to reflect improvement in banks’ condition,” Bernanke said. “Higher capital puts these firms in a much better position to absorb future losses while continuing to fulfill their vital role in the economy.”
At another conference of business journalists last week in Washington, Fed Reserve Vice Chair Janet Yellen said the bank would be more transparent in its dealings with the general public. She added that it had adopted a “never explain, never excuse” policy that is now over. Bernanke’s comments today could be a step in that direction.