Financial institutions in the United States have stronger capital positions than they did in 2008, and the Federal Reserve continues to regularly test the ability of the largest institutions to withstand economic stress (chart 14). Bank deposits have grown substantially, thereby allowing many banks to reduce their dependence on more volatile wholesale funding (chart 15).
The enactment of the FIST Law will assist the financial system perform its role of efficiently mobilizing savings and investments for the country’s economic recovery as well as its sustained growth and development. The banking system has built-in buffers which provide it with the capacity to internalize losses on their exposures as well as continue with their lending and investment activities.