CHARLOTTE -- Donald Kohn, vice chairman of the Federal Reserve, said bank jitters about the unstable lending market are hurting the overall economy while attending an event in Charlotte on Thursday.

Hundreds of bankers from across the country attended the two-day Credit Markets Symposium that Kohn spoke at. While it’s been a tough year – and short-term indicators aren’t promising – Kohn said the past lending crisis will make a stronger economy in the future.

"As lenders seek protection against perceived downside risks, it is probably going further than necessary to foster financial stability in the long run, but we will end up with a safer, more robust financial system,” said Kohn.

Kohn said he had “no ready answers” to the lending crisis, except that the federal and private sector need to work together to build a more resilient financial system.

Donald Kohn, vice chairman of the Federal Reserve, speaking on Thursday.

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