Bowman: Fed to focus on M&A, capital requirements
January 20, 2026 / By ICBA
Federal Reserve Vice Chair for Supervision Michelle Bowman said the Fed will focus on improving the mergers and acquisitions review process and assessing the appropriateness of capital requirements across the banking system.
Priorities: Speaking in Massachusetts, Bowman said that the Fed would also prioritize addressing payments and check fraud as well as strengthening examiner training and development.
CBLR Reduction: Bowman also said federal regulators’ proposed recalibration of the Community Bank Leverage Ratio would provide greater flexibility for eligible community banks.
Background: The banking agencies last fall issued a proposed rule to reduce the CBLR from 9% to 8%, as long advocated by ICBA. In a national news release, ICBA said reducing the CBLR will provide community banks additional room on their balance sheets to meet the credit needs of local communities.
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