Remarks By Under Secretary for Domestic Finance Nellie Liang at the 2024 OCC Bank Research Symposium

As Prepared for DeliveryIntroductionThank you for the invitation and opportunity to speak to you today.1 The topic of your research conference—depositor behavior, bank liquidity, and run risk -- is critically important for the business of banking and for financial stability. The deposit runs we observed in the spring of 2023 were in many ways the most serious disruption to banks in more than a decade. The runs contributed to the failures of three relatively large banks in the U.S., stresses at other banks with similar business models, and the failure of a GSIB. More broadly, they were a stark reminder that depositor runs and contagion to other banks are not anachronistic events of the past, and what they exposed were not new, unknown vulnerabilities.