A top U.S. bank regulator said on Wednesday that while banks have strengthened their liquidity after the spring banking crisis, firms must remain on guard for looming risks, Reuters reported. Michael Hsu, the acting head of the Office of the Comptroller of the Currency (OCC), said banks specifically need to re-examine their exposures, preserve capital, and maintain strong risk management as the sector looks to recover from a string of bank failures and broader turmoil. "Hope for the best, prepare for the worst," Hsu told reporters. "We hope (the stability) continues, but we are prepared and preparing for volatility to return." Hsu said that the recent failures of banks like Silicon Valley Bank and First Republic set off re-examinations of risk by both banks and their supervisors. He added that most of the national banks the OCC supervises were already tackling those issues, but watchdogs will be keeping a close eye.
