US Treasury Secretary, Janet Yellen, testified to the Senate Finance Committee on Thursday, reiterating that the banking system remains sound and reassuring Americans that their deposits will be safe.
In prepared remarks, Yellen emphasized the government's commitment to protecting depositors' savings, following panic in the markets caused by the collapse of Silicon Valley and concerns over Credit Suisse.
While Yellen did not mention the Swiss bank in her comments, it has added to the jitters.
Over the past week, the US government took "decisive and forceful" actions, guaranteeing depositors in failed Silicon Valley Bank and Signature Bank, which helped stem the panic, according to reports.
Meanwhile, Credit Suisse has seen a decline in its share price, prompting worries about economic contagion.
Yellen's comments sought to demonstrate the government's commitment to the safety of depositors' savings while highlighting the stability of the banking system in the US that Americans can count on.
Yellen also reinforced the importance of cybersecurity: "Protecting America's competitive advantage in technological innovation is essential to our national and economic security," Yellen said.
While Yellen's comments may have quelled concerns about US banks, there remains ongoing uncertainty about what will happen with Credit Suisse and the potential for the economic fallout to spread more widely to other banks.