WASHINGTON (Reuters) - Global markets will need time to process actions by regulators and banks this week, U.S. Deputy Treasury Secretary Wally Adeyemo told CNBC on Friday, adding that U.S. officials will remain vigilant going into the weekend.
Adeyemo said deposits have stabilized over the course of this week and backed actions by large U.S. banks on Thursday to give San Francisco-based First Republic Bank (NYSE:FRC) a $30-billion lifeline.
"The market is taking time to price in the actions that have been taken by regulators but also by the biggest banks," he told CNBC. "What we've done now, because of liquidity facilities, is given the institutions to think through how they organize their businesses going forward."
Thursday's rescue deal, in addition to Swiss aid for Credit Suisse, failed to arrest a slide in share prices on Friday just as SVB Financial Group filed for bankruptcy days after its former unit Silicon Valley Bank was taken over by U.S. regulators.
Adeyemo said a number of U.S. banks pre-positioned themselves by utilizing the Federal Reserve's discount window, but they have been taking less funds as the week progressed.
"What we expect to see over time, is that they're going to need less liquidity from the discount window," he told CNBC.