STONE MOUNTAIN, Ga. — The U.S. banking system is much stronger today compared to the battered industry that emerged from the 2008-2009 recession, but despite its contribution to the recovery, economic activity has not yet reached satisfactory levels, Federal Reserve Chairman Ben Bernanke said Monday night.

Bernanke also said banks still have work to do in reducing their reliance on wholesale funding, and stressed the "critical" need for financial institutions to develop and fine tune their independent risk management setup in order to protect the health of the banking system.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.