Vice Chair Michelle W. Bowman said on January 7, 2026 that the Federal Reserve has advanced several reforms to modernize banking supervision. The board has issued supervisory operating principles that focus examiners on material financial risks and early remediation, after lessons from the Silicon Valley Bank collapse. Changes include a revised LFI rating framework that better reflects overall risk, elimination of “reputational risk” and climate guidance from the supervisory process, and a proposed adjustment to the community bank leverage ratio from 9% to 8%. Additional plans are underway to refine the enhanced supplementary leverage ratio, stress‑testing procedures, and application and data‑collection requirements for community banks, aiming to increase transparency and reduce regulatory burden. The Fed will continue to seek public comments and finalize proposals in coming months.
https://www.federalreserve.gov/newsevents/speech/bowman20260107a.htm
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