Federal Reserve to Revamp Bank Supervision and Recruit Outside Talent

Federal Reserve Vice Chair for Supervision Michelle Bowman is spearheading a shift in the central bank's approach to bank oversight. The goal is to reduce procedural and form-based requirements and focus resources on material financial risks such as capital, liquidity and governance, allowing problems that could lead to bank failures to be identified earlier. The changes will affect supervisory standards and compliance costs across the US banking industry.

Bowman recently said the Federal Reserve had completed an organizational restructuring of its supervisory division and that related changes would begin soon. The next phase will involve recruiting talent from outside the Federal Reserve System to fill current vacancies and refocusing supervisory and regulatory enforcement priorities. Available information does not specify an announcement date, the number of hires or a budget, but the reforms are clearly aimed at streamlining procedures and curbing excessive regulation.