Fed Governor Bowman and Michael Barr Advocate Tailored Regulations for Community Banks on February 28, 2025

Federal Reserve Governor Michelle Bowman has emphasized the need for more tailored regulations for community banks, arguing that these institutions should not be subject to the same rules as larger banks. In her remarks, Bowman highlighted the importance of creating a regulatory framework that aligns with the size and business scope of community banks. Additionally, Michael Barr, the Fed’s top bank watchdog, stressed the necessity for agency supervisors to engage early with lenders to better understand the benefits and risks associated with new technologies. These comments reflect ongoing discussions within the Federal Reserve regarding the regulatory landscape for smaller banking institutions.