The Federal Reserve's new Bank Term Funding facility and discount window lending are working to provide liquidity to the banking system, US Treasury Secretary Janet Yellen will tell at the American Bankers Association conference on Tuesday. Yellen will further note that aggregate deposit outflows from regional banks have stabilized following these measures.

Additional takeaways via Reuters

"US actions on banking stability show resolute commitment to ensure depositors' savings, banking system are safe."

"Treasury, Fed, FDIC actions reduced risk of further bank failures that would have imposed losses on deposit insurance fund."

"Similar actions to protect depositors could be warranted if smaller institutions suffer deposit runs that pose risk of contagion."

"Steps to protect SVB, signature depositors were aimed at protecting the US banking system, not specific banks or classes of banks."

"A dynamic and diverse banking system - with large, mid-sized and small banks - is critical to the US economy."

Market reaction

The US Dollar Index stays on the back foot following these comments and was last seen losing 0.2% on the day at 103.10.