On Wednesday, Treasury Secretary Janet Yellen said she would not be surprised to see some bank consolidation in the future.

On CNBC’s “Squawk Box,” she said, “I see strength in the banking system that has a diverse set of financial institutions capable of satisfying different needs across our economy. We do have a diverse banking system with strong community banks, regional banks, larger banks that are involved in global business, and I wouldn’t want to see that threatened.”

Though she continued, “Certainly in this environment, some banks are experiencing pressure on earnings and there is motivation to see some consolidation and it wouldn’t surprise me to see some of that going forward.”

Yellen’s assessment comes on the heels of federal regulators seizing several midsized regional banks earlier this year. In March, within days of each other, Silicon Valley Bank and Signature Bank collapsed. They were the biggest bank failures since the financial crisis of 2008.

First Citizens BancShares ultimately bought Silicon Valley Bank, while New York Community Bankcorp purchased Signature Bank. For over a month, First Republic Bank sat at the edge of failure, as major Wall Street Banks gave it a $30 billion cash injection in the form of uninsured deposits. It was finally seized by regulators in May, before being purchased by JPMorgan Chase.

The Secretary of the Treasury now has indicated there may be more bank failures to come.