"Governor Bowman Advocates for Substantive Changes in Bank Capital Reform"
Originally Published 2 years ago — by Federal Reserve
Governor Bowman discussed proposed changes to bank capital rules in the United States, emphasizing the need to carefully consider the impact of increased capital requirements on U.S. businesses and the economy. She highlighted concerns about over-calibration and the lack of regulatory tailoring in the proposal, and suggested modifications to mitigate these issues. Bowman also addressed technical areas of change, such as diversification benefits, market risk capital rule calibration, and alignment of risk weights and credit risk. She emphasized the importance of balancing the benefits and costs of capital requirements and the need to consider broader regulatory implications and international comparability.