Yellen: Our actions show resolute commitment to ensure depositors' savings

• Treasury, Fed, FDIC actions reduced risk of further bank failures that would have imposed losses on deposit insurance fund
• Similar actions to protect depositors could be warranted if smaller institutions suffer deposit runs that pose risk of contagion
• Aggregate deposit outflows from regional banks have stabilised
• Fed is working to provide liquidity Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term to banking system, which is stabilising

This is just a rehash of their commitment to safeguard bank deposits. For now, we might turn the page to the next chapter. But we shall see whether or not lawmakers, policymakers and regulators alike will have learned anything from this episode.