With the banking system experiencing a lack of de novo formation in the past decade, policymakers must avoid adding regulatory burdens on community banks, Federal Reserve Governor Michelle Bowman said.
Remarks: Speaking in Chicago, Bowman said policymakers must “achieve a meaningful balance” in their supervisory approach to community banks that recognizes their lower-risk profile and less-complex activities.
ICBA Position: ICBA advocates a flexible supervisory approach to de novo banking applicants and supports legislative efforts to ease regulations that hinder de novo bank formation.