Reforming Bank Supervision for a Tailored Approach

In a significant testimony before the US Senate Committee on Banking, Housing, and Urban Affairs, Federal Reserve Governor Michelle Bowman emphasized the need for a more tailored approach to bank supervision. She highlighted the current system's complexity and redundancy, which not only complicates compliance but also escalates costs for banks and their customers.

Priorities for Regulatory Reform

Bowman outlined her priorities if confirmed, which include reforming supervision to focus on core financial risks, restoring regulatory tailoring, fostering innovation within the banking system, and enhancing transparency and accountability. Her appointment as the new Vice Chair of Supervision by President Donald Trump positions her to lead these critical changes at the Federal Reserve.