"Vice Chair Barr Emphasizes Aggressive Supervision of Commercial Real Estate Risk"

Vice Chair for Supervision Randal K. Quarles discussed the importance of bank supervision and the steps being taken to improve the speed, force, and agility of supervision following the failure of Silicon Valley Bank. He emphasized the goals and benefits of supervision, including promoting a safe and efficient banking system to support the economy, and highlighted the need for regulation and supervision to ensure that banks manage their risks prudently. Quarles outlined efforts to intensify supervision at the right pace, encourage timely supervisory action and escalation, and improve the agility of supervision, with a focus on addressing risks such as interest rate and liquidity risks, commercial real estate lending, and potential systemic risks.