More consolidation in the U.S. banking system would not be surprising considering the current environment in the financial sector, says Treasury Secretary Janet Yellen.
While Yellen acknowledged that she does not wish to see further consolidation by some smaller banks threaten the diversity of the banking sector, she would understand due to the enormous pressures many banks face.
“There is motivation to see some consolidation, and it wouldn’t surprise me to see some of that going forward,” she told CNBC on June 7.
According to data from the Federal Deposit Insurance Corp. (FDIC), there were a total of 4,135 commercial banks as of the end of 2022, down from the peak of 14,469 in 1973….