WASHINGTON — Banks and supervisors must heed the lessons of the financial crisis and avoid errors such as growing too fast, relying on wholesale funds, or concentrating lending in one sector, Atlanta Federal Reserve Bank president Dennis Lockhart said Friday.

Lockhart summarized the lessons of the crisis this way: “concentrations are deadly,” “speed kills,” “hot money can burn you,” and “the entry bar needs to be raised” for new bank charters.

“As bankers and regulators, it’s our collective responsibility to heed the lessons of recent experience and get it right going forward to ensure a healthy, well-functioning banking system for our communities and our nation,” Lockhart said in a speech prepared for delivery to the Alabama Bankers Convention’s annual meeting.

— Market News International

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