Bowman’s voice for common sense

As a former community banker and state regulator, Federal Reserve Board Gov. Michelle Bowman called for a common-sense approach among Washington regulators in late February. In an essay for Starling Insights, Gov. Bowman wrote that “accountability is no less important for bank regulators than it is for banks.”

“We should not be afraid to show our work in the execution of our regulatory or supervisory responsibilities,” Gov. Bowman said. “Accountability also requires transparent policies and procedures and conducting supervision in a way that is predictable and fair.”

Bowman says that transparency for regulators does not mean leniency for banks, but a focus on high standards across the financial system.

“That same transparency helps show that we regulators are holding ourselves to high standards — that we are appropriately exercising the power granted to us by Congress and have done so in a way that supports due process and fairness.”

Finally, Gov. Bowman emphasizes that regulators should be careful not to exceed their authorities.

“We must implement the laws that Congress has passed as they are written and not stretch that authority to venture into other areas of policymaking,” she concluded.