During testimony before the Senate Banking Committee today, Federal Reserve Chairman-Designate Jerome Powell expressed general support for the Senate’s bipartisan framework for regulatory reform, which he referred to as “workable” and “sensible.” The draft legislation, which is expected to receive a committee vote next week, includes a number of reg relief provisions advocated by ABA, including simplifying capital calculations for community banks.
Powell added that the Fed will continue to seek opportunities to provide relief for banks through tailored regulation that takes into account an institution’s size and risk profile. “We will continue to consider appropriate ways to ease regulatory burdens while preserving core reforms — strong levels of capital and liquidity, stress testing, and resolution planning — so that banks can provide the credit to families and businesses necessary to sustain a prosperous economy,” he said. “In doing so, we must be clear and transparent about the principles that are driving our decisions and about the expectations we have for the institutions we regulate.”
Powell also noted that the financial system is significantly stronger today than it was at the time of financial crisis, and told lawmakers that he does not believe that any banks today are “too big to fail.”
