The White House, which has railed against excessive concentration in other US sectors, is also keeping close watch to see if there are outflows of money to larger banks, and remains committed to ensuring robust competition in the banking sector, the official said.
US consumers have rushed to move deposits to banking giants, including JPMorgan Chase & Co, Bank of America and Citigroup since the collapse of SVB, Reuters reported on Tuesday, citing sources familiar with the matter.
The transfers, which one source said reached billions of dollars, came as investors fretted over the financial health of smaller regional lenders even after Biden’s comments on Monday.
“The president has a robust competition agenda. We want there to be a thriving banking sector with lots of smaller banks, lots of community banks that can get in there and compete with the big guys,” the official said.
“It’s important to us that business model can survive.”
The official said it was also possible that people that had moved funds to larger institutions would return to their smaller banks once they realised the system was functioning well.
The official said it was good to see that the market had calmed somewhat, but said government actions had been taken to protect depositors, consumers and small businesses, not investors.
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