Bowman urges tailored oversight to empower community banks and modernize capital rules

In a Senate testimony, Federal Reserve Vice Chair for Supervision Michelle Bowman says the U.S. banking system remains sound with strong capital and liquidity, but growing nonbank competition is changing the landscape. She outlines steps to encourage responsible innovation, tailor regulation for community banks, advance EGRPRA to cut burdens, and modernize the large-bank framework (Basel III, SLR, stress testing, G-SIB surcharge). She also discusses CAMELS revisions, ending reputational-risk in supervision, increasing transparency by publishing internal manuals, and sharpening supervisory tools and accountability.