Bowman, Modernizing Financial Regulation
Federal Reserve (Speeches & Testimony)
Federal Reserve (Speeches & Testimony) · Jul 13, 2026
Bowman outlines the Financial Stability Board’s ongoing modernization of global financial regulation via four guiding principles: focus on material financial risks, tailor regulation to each institution’s risk profile, ensure transparency and accountability, and adopt a forward-looking stance that accommodates responsible innovation. He highlights U.S. actions such as Basel III–style capital framework reforms (simplifying risk-based capital, recalibrating the G-SIB surcharge, reducing overlaps with stress testing, and indexing thresholds), plus enhancements to supervisory principles, asset-threshold updates, refined risk assessments, and AI-use guidance. The plan includes a fall public consultation and continued international cooperation to balance financial stability with economic growth and innovation.