The top U.S. central banker says the country's banking system has weathered a recession and major corporate bankruptcies, and emerged "strong, vibrant and profitable."
In a New York speech to a banking group Tuesday, Federal Reserve Chairman Alan Greenspan said bankers are using complex financial instruments such as derivatives and improved technology to assess and manage risk.
He says this helps bankers run their businesses better, makes the financial system more resilient and contributes to a stable economy.
Mr. Greenspan also said a wave of bank consolidations in the United States helps make these institutions "less inefficient."