On June 6, the Fed’s Vice Chair for Supervision, Michelle Bowman, outlined her approach to enhance banking supervision and regulation during prepared remarks.
In her remarks, Bowman emphasized using “pragmatism” to identify problems and develop solutions, with a particular focus on financial risks affecting bank safety and soundness. She announced plans to extend supervisory “tailoring” across different bank categories, addressing concerns that requirements designed for larger institutions have been inappropriately applied to smaller banks. Key initiatives she described in her speech include hosting a conference on small and community bank issues, addressing check fraud concerns, revising the Large Financial Institution ratings framework, ensuring that guidance promotes clarity in supervisory expectations, and prioritizing examiner training.
[View source.]
