2 Board of Governors of the Federal Reserve System, Supervision and Regulation Report, April 2021 (Washington: Board of Governors, April 2021), https://www.federalreserve.gov/publications/files/202104-supervision-andregulation-report.pdf; Board of Governors of the Federal Reserve System, Financial Stability Report, May 2021 (Washington: Board of Governors, May 2021), https://www.federalreserve.gov/publications/files/financial-stabilityreport-20210506.pdf. The Supervision and Regulation Report accompanies this testimony.
1  -2was fortified by over 10 years of work to improve safety and soundness, from both regulators and the banks themselves. Higher levels of capital and liquidity, better risk management, and more robust systems let them absorb an unprecedented shock—while providing refuge from market instability, delivering essential public aid, and working constructively to support borrowers and communities.