Bowman urges tailored regulation for community banks at Kansas City Fed conference
Fed Vice Chair for Supervision Michelle Bowman argued against applying "one-size-fits-all" regulations designed for large institutions to community banks, in pre-recorded remarks delivered May 14 to the Federal Reserve B.
At a glance
- Bowman said supervision of community banks should focus on material financial risks, not procedural compliance, per her May 14 remarks.
- She criticized CECL's burden on community banks and overly strict Regulation O enforcement.
- She cited updated MRA standards and a revised community bank leverage ratio.
VERDICT — CONFIRMED
Fed Vice Chair for Supervision Michelle Bowman argued against applying "one-size-fits-all" regulations designed for large institutions to community banks, in pre-recorded remarks delivered May 14 to the Federal Reserve Bank of Kansas City's 2026 Future of Banking Conference. According to the speech text, Bowman said the supervisory framework should focus on material financial risks rather than procedural compliance, criticizing the burden of the CECL accounting framework on community banks and overly strict Regulation O enforcement. She also pointed to new standards clarifying that Matters Requiring Attention should target deficiencies with a significant probability of significant harm, and to an updated community bank leverage ratio offering enhanced flexibility.
Key facts on file
- Bowman said supervision of community banks should focus on material financial risks, not procedural compliance, per her May 14 remarks.
- She criticized CECL's burden on community banks and overly strict Regulation O enforcement.
- She cited updated MRA standards and a revised community bank leverage ratio.
