Fed’s Bowman urges fair rules for community banks

Fairness for community banks often appears to be a non-factor when considering which proposals make the regulatory agenda, Federal Reserve Governor Michelle Bowman said.

Details: In public remarks, Bowman said the response to last year’s banking stress appears to be cranking the regulatory dial “up to 11.” To maintain a framework that is fair for community banks, regulators should:

• Focus on effective prioritization of risks.

• Improve transparency and predictability in bank regulations.

• Tailor rules to reduce the incremental burden on smaller institutions.

Regulatory Review: Bowman also noted that the agencies last week launched their latest regulatory review under the Economic Growth and Regulatory Paperwork Reduction Act. In a national news release following last week’s announcement, ICBA urged the agencies to advance more meaningful relief than they have enacted under previous reviews.