Fed's Bowman Calls for Modernizing Bank Regulation and Supervision

Federal Reserve Governor Michelle Bowman called for a modernization of the regulatory and supervisory landscape governing U.S. banks, delivering remarks at the 2026 Community Banking Research Conference in St. Louis, Missouri. The annual event is co-sponsored by the Federal Reserve System, the Conference of State Bank Supervisors, and the Federal Deposit Insurance Corporation.

The conference serves as a key forum for policymakers, academics, and industry officials to examine the challenges and opportunities facing community banks across the country. Bowman's address focused on the need to update oversight frameworks that critics argue have not kept pace with changes in the financial sector, technology, and the broader economy.

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Community banks play an outsized role in lending to small businesses and rural households, making regulatory calibration a matter of broad economic consequence. Policymakers at the Fed and other agencies have faced mounting pressure to distinguish between rules appropriate for the largest systemically important institutions and those that apply to smaller lenders with fundamentally different risk profiles.

Bowman has been among the more vocal Fed governors on issues of regulatory burden and the importance of preserving a diverse banking ecosystem. Her remarks at a jointly sponsored event signal continued interagency engagement on how supervisory practices can be refined without compromising financial stability or consumer protection.

Continue reading at FRB: Speeches.