Federal Reserve chair Jerome Powell is warning global regulators not to take the resilience of the financial system for granted and emphasising the need to strengthen bank supervision and regulation in the aftermath of a series of bank failures this spring.

In a speech delivered on the morning of 29 June in Madrid, Spain, Powell noted that the current strength and resilience of the banking system are due in large part to changes made in the aftermath of the global financial crisis, including the institution of bank “stress tests” and reforms that vastly increased capital and liquidity at big banks.