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Biden alleges US banking system 'safe' after SVB collapse, but vows stiffer bank regulations

US President Joe Biden speaks in the Roosevelt Room of the White House on March 13, 2023.

In an apparent effort to assuage the American public's concerns about the country's financial system, President Joe Biden has brushed off concerns about the banking system's health following the collapse of the Silicon Valley Bank (SVB), alleging that the system remains safe.

"Americans can have confidence that the banking system is safe,” Biden said in televised remarks from the White House, adding the government is ensuring that SVB depositors get their money back.

"No losses will be borne by the taxpayers," he said, emphasizing, "The money will come from the fees that banks pay into the deposit insurance."

The managers of the banks will be fired, Biden added.

"I'm going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure will happen again, and to protect American jobs as a small business."

US regulators shut down the SVB on Friday in what has become the biggest bank failure in the States since the financial crisis of 2008.

The Silicon Valley Bank had built its business on supporting tech startups, including those from China.

The bank was among the top 20 American commercial banks, with $209 billion in total assets at the end of 2022, according to the Federal Deposit Insurance Corporation (FDIC).

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