The Federal Reserve’s lead banking regulator issued new guidelines publicized Nov. 18 for financial sector oversight by the agency, a move that has received praise from many within the banking industry.
The changes advise bank examiners to focus on significant financial risks and “not become distracted from this priority by devoting excessive attention to processes, procedures, and documentation.”
The new directives were released in a memorandum shared with Fed personnel on Oct. 29, yet only publicized Tuesday.
Michelle Bowman, the Fed’s vice chair for supervision since Trump appointed her in March, said that the new guidelines would be more effective.
“By anchoring our work in material financial risks, we strengthen the banking system’s foundation while upholding transparency, accountability, and fairness,” Bowman said. “This is not about what we are leaving behind—it is about building a more effective supervisory framework that truly promotes safety and soundness across our financial system, which is the Federal Reserve’s core supervisory responsibility.”…