Bowman: In Exams, Fed to Focus on Exposure to COVID-Stressed Industries

As the Federal Reserve ramps up its post-COVID-19 examination program, Fed Governor Michelle Bowman said in a speech today, examiners’ “initial focus will be to assess higher risk banks, particularly those with credit concentrations in higher risk or stressed industries.” Among the stressed industries highlighted in her speech were travel, leisure and hospitality, as well as oil and gas production and aviation manufacturing.

Bowman added that the Fed will consider the “unique and challenging conditions” facing banks during the coronavirus pandemic and “continue to be sensitive to the capacity of each bank to participate in examinations and strive to prevent undue burden on banks struggling with crisis-related operational challenges.”