ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Uncategorized

Fed Gov. Bowman discusses supervision and regulation of large banks

September 30, 2022
Reading Time: 2 mins read
Fed Gov. Bowman: ‘Imperative’ to modernize evaluation of bank competition

During an industry event today, Federal Reserve Gov. Michelle Bowman praised banks for their recent examples of resilience during the pandemic, and how recent supervision and regulation have contributed to a “safer, stronger, better capitalized” banking system.

Bowman’s comments primarily focused on what she called the Fed’s “incremental approach to ongoing refinements” in supervision and regulation and the critical issues relevant to large banks. “I am not opposed to changes that make sense, based on the experience we have gained from applying existing rules and approaches, or prompted by new and emerging issues,” she said, explaining that regulation and supervision must be nimble to address new safety and soundness risks but should always consider tradeoffs and potential unintended consequences.

Among the regulatory issues she cited for large banks were stress testing, mergers and acquisitions, resolution planning, cryptoassets and capital regulation—where much of her remarks were focused. Capital regulation was an area where requirements were “quickly bolstered without extensive analysis in response to the 2008 financial crisis,” she said, resulting in “redundant methods of calculating capital and demands that firms of all sizes and risk profiles comply with the highest requirements.” A one-size-fits-all approach was framed around the largest banks whose activities presented the most significant risks, ignoring bank size and business model.

Cautioning that “over-regulation can restrain bank lending,” Bowman emphasized that it’s important to think about capital “holistically,” which provides an opportunity to consider adjustments to the components of capital requirements for larger banks, such as the countercyclical capital buffer.

“While having releasable capital buffers shouldn’t necessarily be ruled out, in my view, after a decade of stress testing and recent real-life stress experience, we have seen that the existing level of capital requirements has proven to be adequate for banks to deal with significant stress,” she said. “Balancing safety and soundness with the need for appropriate risk-taking means that we should not simply assume that the further layering on of capital requirements, including through the application of the CCyB, would be beneficial.”

ADVERTISEMENT
ShareTweetPin

Related Posts

ABA files coalition amicus brief urging Supreme Court to reject class certification for uninjured class members

U.S. Supreme Court declines to address class certification for uninjured members

Uncategorized
July 1, 2025

U.S. Supreme Court dismissed Labcorp’s appeal as “improvidently granted,” effectively letting stand the Ninth Circuit’s ruling that upheld class certification despite including uninjured members.

Capital One agrees to pay $425 million to resolve 360 Performance Savings Account allegations

Virginia federal court trims influencers lawsuit against Capital One

Uncategorized
July 1, 2025

A Virginia federal court partially granted a motion to dismiss filed by a class of social media influencers alleging Capital One’s coupon-search browser extension stole from content creators.

First Circuit rules federal law does not preempt Puerto Rico’s credit card surcharge law

First Circuit rules federal law does not preempt Puerto Rico’s credit card surcharge law

Uncategorized
July 1, 2025

In a unanimous decision, a First Circuit panel ruled that Puerto Rico’s Law 150 is not preempted by the Cash Discount Act or the Durbin Amendment.

U.S. Supreme Court grants petition to examine post-judgment relief in Hamas banking lawsuit

U.S. Supreme Court rejects Hamas victims’ attempt to revive bank lawsuit

Uncategorized
July 1, 2025

In a unanimous decision written by Justice Clarence Thomas, the U.S. Supreme Court ruled that relief under Federal Rule of Civil Procedure 60(b)(6) applies only in “extraordinary circumstances,” even where the movant seeks to reopen a case to...

Seventh Circuit revives CFPB’s lender redlining lawsuit

Illinois federal court denies joint motion to vacate redlining settlement

Uncategorized
July 1, 2025

An Illinois federal court denied the joint motion by the CFPB and Townstone to vacate the settlement in the bureau’s redlining lawsuit against the company.

U.S. Supreme Court vacates Ninth Circuit preemption decision

U.S. Supreme Court rules Hobbs Act does not bind district courts in civil enforcement proceedings

Uncategorized
July 1, 2025

In a 6-3 decision written by Justice Brett Kavanaugh, the U.S. Supreme Court held that the Hobbs Act does not bind district courts in civil enforcement proceedings to a federal agency’s interpretation of the statute.

NEWSBYTES

Congress sends budget bill to president with numerous ABA-backed provisions

July 3, 2025

Factory orders increased in May

July 3, 2025

International trade deficit increased in May

July 3, 2025

SPONSORED CONTENT

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025

PODCASTS

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.