Federal Reserve (Speeches & Testimony)
Jul 13, 2026
Bowman, Modernizing Financial Regulation · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 13, 2026
The Fed and FSB (via Bowman’s framework) are taking a principles-based, consultative approach to AI in banking—encouraging adoption inside supervised banks using real-world use cases and flexible, risk-focused guidance shaped by public comment, while reserving intervention if AI creates material safety-and-soundness risks.
Bowman, Modernizing Financial Regulation · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 13, 2026
Bowman urges the FSB to adopt internationally shared principles for financial modernization while allowing meaningful local discretion in implementation, warning that rigid harmonization would undermine effectiveness and lead to aligned goals but fragmented rules for businesses and investors.
Bowman, Modernizing Financial Regulation · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 13, 2026
U.S. bank supervision is shifting from process-heavy, volume-driven exams to a material-risk, “reasoned judgment” model that prioritizes fewer but more consequential findings—focusing on liquidity, capital and solvency risks—reducing compliance noise for low-risk firms while enabling faster escalation for banks with concentrated balance-sheet risks, with Silicon Valley Bank cited as the cautionary example.
Bowman, Modernizing Financial Regulation · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 13, 2026
The Fed’s capital reform shifts from layered, aggregate capital to a bottom-up, risk-calibrated “single stack” with recalibrated (and growth-indexed) G‑SIB surcharges, less overlap with stress tests, and “right-sizing” to reduce capital drag on lending while preserving robust prudential levels.
Bowman, Modernizing Financial Regulation · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 13, 2026
Policymakers propose indexing and better tailoring regulatory thresholds so inflation and nominal growth don’t mechanically push regional and community banks into tougher rules, reducing unnecessary compliance costs, easing procyclicality for smaller banks, supporting local lending, and potentially improving margins and growth for investors.