| Officials from the government and Federal Reserve recently held a closed meeting to discuss the safety of the banking system after customers withdrew almost $100 billion from their accounts. The meeting concluded that although some banks were experiencing stress, the overall system was sound and resilient. The majority of the withdrawals came from small banks, while larger institutions saw an increase in deposits. Deposits have been declining steadily over the past year, falling by $582.4 billion since February 2022. The Federal Reserve has taken actions to backstop the system, and officials have assured the public that their deposits are safe. |
Complex Terms:
- Backstop – A support or safety net provided to prevent or mitigate losses or risks
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