Big banks still face problems with risk management and complying with regulations, Federal Reserve Chairwoman Janet Yellen said Wednesday.
“Compliance breakdowns in recent years have undermined confidence in the [big banks and financial firms’] risk management and controls and could have implications for financial stability, given the firms’ size, complexity, and interconnectedness,” Yellen said in testimony prepared for the House Financial Services Committee.
Yellen said, however, that banks’ financial condition has improved significantly since the financial crisis.
The eight biggest banks have doubled their capital since 2008, Yellen testified.
Regional and community banks are healthy and are seeing growth in lending, she added.
“While more work remains to be done, I hope you will take away from my testimony just how much has changed,” Yellen concluded.
