Fed’s Bowman Says Bank Supervision Preferable to Capital Rules
- Fed governor speaks about bank failures at event in Austria
- Criticizes internal reviews, calls for independent examiner
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Federal Reserve Governor Michelle Bowman said US banks need better supervision rather than higher capital requirements because they could stunt lending and competition, and she repeated her calls for an independent review of recent bank failures.
“We need to consider whether examiners have the appropriate tools and support to identify important issues and demand prompt remediation,” she said Sunday, according to a transcript of her remarks at an event in Austria. “Increasing capital requirements simply does not get at this underlying concern about the effectiveness of supervision.”