The U.S. banking system is sound and resilient, with strong capital and liquidity, according to the latest report on bank supervision and regulation (PDF) released in May by the Federal Reserve Board of Governors.1 Nevertheless, bank supervisors are actively monitoring risks associated with credit, liquidity and interest rates. These risks have risen in 2023 because of prevailing economic conditions and uncertainty about the future path of the economy. The banking system was challenged earlier this year by the failures of three large banks (Silicon Valley Bank, Signature Bank and First Republic Bank). Even though ... (full story)