- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
- Cuts, cash, credit: China bids to jumpstart flagging economy
- France's debt weighs heavier ahead of budget debate
- Iran treads carefully, backing Hezbollah while avoiding war
- Return to sender: waste stranded at sea stirs toxic dispute
- 'Broken' news industry faces uncertain future
- On remote Greek island, migratory birds offer climate clues
- Taken from mother by nuns, victim seeks answers as pope visits Belgium
- China cuts amount banks hold in reserve to boost lending
- Hong Kong, Shanghai extend surge as China optimism boosts markets
- Vietnam president reiterates support for Cuba during official visit
- Drought reduces Amazon River in Colombia by as much as 90%: report
- Stay or go? Pacific Islanders face climate's grim choice
- Florida bracing for 'unsurvivable' Hurricane Helene
- Poverty rises to over 52 percent in Milei's Argentina
- Chloe's see-through look may not be for Kamala Harris
- Champagne houses abuzz over English sparkling wine
- Macron, Trudeau pledge to work for 'decarbonized' economies
- Hurricanes, storms, typhoons... Is September wetter than usual?
- China stimulus, tech optimism boost stock markets
- 'Unsurvivable' Hurricane Helene races towards Florida
- Macron meets Trudeau in Canada as both face political setbacks
- South Korea surges in UN innovation index
- Chloe's see-through look may not be for Kamala
- Floods threaten Niger's historic 'gateway to the desert'
- China economy hopes boost global equities
- Ubisoft shares sink after 'Assassin's Creed' delay
- German economy to shrink again in 2024: think tanks
US banking system 'well-capitalized' despite risks: Yellen
US Treasury Secretary Janet Yellen said Thursday that the country's banking system is "well-capitalized" even as some banks face stresses stemming from the commercial real estate sector.
Yellen made the comments to a congressional hearing where she added that regulators are monitoring risks from nonbank mortgage lenders and authorities plan to tighten oversight on investment advisers.
Earlier this week, Yellen expressed concern about the commercial property sector, saying banking supervisors are working with institutions to manage challenges.
The concern is that as commercial real estate loans come due, they will have to be refinanced in an environment of higher interest charges, lower valuations and where vacancy rates are growing -- adding pressure on the system.
Vacancy rates in office buildings, especially in metropolitan areas, have surged, Yellen told the Senate Committee on Banking, Housing, and Urban Affairs on Thursday.
"There are some risks, and there are some institutions that will face stresses from commercial real estate," she said.
"For some banks, this will be a concern. But on balance I'd say the system is well-capitalized," she added.
At the hearing, Yellen also said regulators are eyeing risks related to nonbank mortgage lenders.
"Nonbank mortgage companies lack access to deposits which banks have, they're reliant on short-term financing that may be a lot less stable than deposits," she said.
Yellen added that their credit lines can be pulled during times of stress and that they also lack access to the types of liquidity backstops that banks have.
"There is concern that in stressful market conditions, we could see the failure of one of these," she said.
On Thursday, Yellen also noted that Treasury plans to issue a proposed rule applying requirements for anti-money laundering and countering terrorism financing on investment advisers.
"Investment advisers is a financial sector that hasn't been uniformly covered" by anti-money laundering and terrorism financing rules, according to the Treasury chief.
"Our risk assessment shows that that is an area that provides an avenue for sanctioned individuals, for criminals and the like, to move wealth and invest in the United States without the sources of their wealth being detected," she said.
J.Bondarev--CPN