Fed Vice Chair for Supervision Michelle Bowman: A Fresh Look at Supervision and Regulation

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It is a pleasure to join you today for my first public remarks as the Federal Reserve Board's Vice Chair for Supervision. Today, I will describe my approach to leading the Fed's Division of Supervision and Regulation in its vital work to promote the safe and sound operation of the U.S. banking system. I have spoken extensively in the past about my principles for supervision and regulation, which will continue to guide my approach to supervision and the bank regulatory framework. At the core of these principles is pragmatism, which focuses on first identifying the problem to be solved and then developing efficient solutions. Once we have identified a need for reform, or a problem to be solved, our next task is to conduct a careful analysis of the intended and unintended consequences of any proposed policy solution, and to consider alternative approaches that lead to lower cost or better outcomes. The views I share with you today reflect my initial thoughts about how these principles should be incorporated into the important work that will be required to improve supervision and regulation in the future, addressing: (i) enhancing supervision to more effectively and efficiently meet the Fed's safety and soundness goals; (ii) reviewing and reforming the capital framework to ensure that it is appropriately designed and calibrated; (iii) reviewing regulations and information collections to ensure that this framework remains viable; and (iv) considering approaches to ensure the applications process is transparent, predictable, and fair. Fed's Bowman: Regulators and Congress should reconsider bank size thresholds for assigning bank rules. Fed's Bowman: The fed will be reviewing a wide range of existing guidance. Fed's Bowman: Bank regulators will publish a proposal in the near future to refine the enhanced supplementary leverage ratio.