Fed’s Bowman Says Regulators Could Boost Treasury Liquidity
- Regulators could amend G-SIB surcharges to aid primary dealers
- Credit decisions shouldn’t be dictated by bank supervisors
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Federal Reserve Governor Michelle Bowman said it’s within regulators’ power to amend bank rules to help boost liquidity in the US Treasury market in times of stress, and called out supervisory pressure that may exclude some banking clients, a practice known as debanking.
“Banking regulators are uniquely positioned to not only analyze but also remediate components of the bank regulatory framework that may exacerbate Treasury market illiquidity,” Bowman told the 2025 Kansas Bankers Association Harold A. Stones Government Relations Conference in prepared remarks.