Monday, May 29, 2023

Fed’s Bowman bets on “specific” reform of banking rules, but not “radical change”

Federal Reserve Governor Michelle Bowman on Friday used that as a “pretext” for the U.S. central bank to hire a third party to analyze the collapse of the Silicon Valley bank and make sweeping changes to banking regulation. Reiterated your call against using failure. ,

“We should consider whether there are necessary — and specific — adjustments that we should make to banking regulation,” Bowman said in remarks prepared to be given at a Texas Bankers Association event, Credit Insurance Reform Deposit. Like listing issues that are out of scope. More of the Fed would need to change the law.

“A radical reform of the banking regulatory framework – as opposed to targeted changes to address the identified root causes of banking system stress – is inconsistent with the fundamental strength of the banking system,” he added.

Bowman has emerged as a strong critic within the Fed of tougher banking rules that supervisory vice chairman Michael Barr has said he plans to implement even before the failures of two regional banks in March caused widespread panic in financial markets. The tension has spread.

During his appearances before Congress this week, Barr was asked repeatedly about Bowman’s views, which were detailed earlier last week.

Barr said he would welcome any independent third-party review following his own bankruptcy review of Santa Clara, California-based SVB. Barr’s review, which was released in late April, found problems with the Fed’s own supervisory approach that he said needed to be fixed.

Barr, who took office last summer, has also said he plans to consider new rules for banks, including entities with assets of $100 billion or more, up from the $250 billion limit established by his predecessor. Lowering the threshold for intensive monitoring of ,

Bowman did not mention monetary policy or economic outlook in his speech.

Nation World News Desk
Nation World News Desk
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