Wednesday, July 24, 2024

Federal Reserve governor lauds banks for resilience

During an industry event last week, Federal Reserve Gov. Michelle Bowman praised banks for their recent examples of resilience during the pandemic, and how recent supervision and regulation have contributed to a “safer, stronger, better capitalized” banking system.

Bowman’s comments primarily focused on what she called the Fed’s “incremental approach to ongoing refinements” in supervision and regulation and the critical issues relevant to large banks.

“I am not opposed to changes that make sense, based on the experience we have gained from applying existing rules and approaches, or prompted by new and emerging issues,” she said, explaining that regulation and supervision must be nimble to address new safety and soundness risks but should always consider tradeoffs and potential unintended consequences.