Federal Reserve Vice Chair for Supervision Michelle Bowman said the Fed should reconsider capital requirements for a wide range of banks, including the calibration of the community bank leverage ratio.
Details: Speaking in Prague, Bowman said:
The Fed needs to think about regulatory policies in a dynamic way based on the evolution in the banking and financial systems.
Regulations must take into account the impact of economic growth and inflation, such as the regulatory thresholds that define categories of banks, including the $10 billion definition of a "community bank."
Support for Community Banks: ICBA recently applauded Bowman on remarks outlining a fresh approach to the agency’s supervision and regulation following her confirmation as vice chair for supervision. In her remarks, Bowman announced plans for a conference on community bank issues later this year, with an emphasis on listening to community banker input on streamlining regulation and supervision.
Background: Prior to her recent confirmation as vice chair for supervision, Bowman was the first person to fill the Fed’s community banking seat, which exists because of ICBA’s successful advocacy for Congress to require community bank representation on the Fed board, and served as a fifth-generation community banker and as Kansas state bank commissioner.
