Bowman Advocates Regulatory Relief for Banks
In her prepared remarks to the Senate Banking Committee, Fed Governor Bowman emphasized that even though the banking system remains stable, traditional lenders need more flexibility and tools to stay competitive.
She noted that non-bank financial firms are capturing a growing share of the lending market without facing the same regulatory burdens regarding capital and liquidity.
- Bowman highlights the uneven playing field for traditional banks
- Non-bank lenders operate under fewer regulatory constraints
- Regulatory reforms aim to boost competitiveness
Context and Debate Around Reform
During the Trump administration, regulators rolled back several post-crisis rules after banks complained that excessive oversight was limiting their ability to compete.
The rapid rise of private credit firms has added to these concerns, prompting regulators to reconsider the current framework.