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Bowman, Modernizing Financial Regulation

Federal Reserve (Speeches & Testimony)

Jul 13, 2026

7/13/2026

Regulators Promote Flexible, Principles-Based AI Adoption Within Banks Through a Consultative, Risk-Focused Framework

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.


7/13/2026

Principles-Based Global Standards With Local Tailoring, Encouraging Directional Convergence Without Rigid Harmonization.

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.


7/13/2026

U.S. Bank Supervision Shifts Toward Material Risk Focus With Fewer But More Consequential Findings

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.


7/13/2026

Federal Reserve Capital Reform Aims to Simplify Rules, Preserve Capital, and Improve Credit Availability

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.


7/13/2026

Indexation Of Thresholds Reduces Burden On Small And Mid-Sized Banks, Preserves Supervision, And Supports Local Credit

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.