US banking regulations weren’t to blame for the recent failures of two midsized lenders, according to Federal Reserve Governor Michelle Bowman.
(Bloomberg) — US banking regulations weren’t to blame for the recent failures of two midsized lenders, according to Federal Reserve Governor Michelle Bowman.
Bowman, who was appointed to the central bank by President Donald Trump, is the latest official to weigh in on the causes of the failures of Silicon Valley Bank, SVB, and Signature Bank. Her comments appear to contrast with those of Michael Barr, the Fed’s top bank regulator, who recently said that supervisors could have done more to keep tabs on SVB before it collapsed.
“I do not believe the failure of these two institutions is an indictment of the broader regulatory landscape,” Bowman said in remarks prepared for a speech at Wharton Business School in Philadelphia.
Bowman also said the US banking system remains on steady footing, even after the banks’ collapse. The central bank is currently undergoing a “process of learning more” about SVB’s failure. “If we identify shortcomings in supervision and regulation, we should and will address those shortcomings,” Bowman said.
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