Key facts
- The Federal Reserve plans to overhaul its bank supervision model.
- The new structure will create five geographic regions for supervision, each led by a regional leader.
- The changes aim to increase accountability and streamline decision-making.
- Fed Vice Chair for Supervision Michelle Bowman announced the plans.
- The Fed will consider updating asset thresholds for stricter bank rules later this year.
The Federal Reserve is set to overhaul its system for supervising U.S. banks, shifting oversight responsibilities to be more accountable to Washington rather than its regional bank presidents. Fed Vice Chair for Supervision Michelle Bowman announced the plan, which aims to create a more centralized and efficient regulatory structure.
Under the proposed changes, the current model where regional Fed banks oversee examinations will be replaced. The new structure will establish five new geographic regions for bank supervision, each headed by a "regional leader." While regional Reserve Bank staff will still conduct supervisory activities, the ultimate responsibility and decision-making authority will be consolidated.