Economic Intelligence News Service reported on the 7th that Federal Reserve Vice Chair Bowman said on Tuesday (6th) that the Federal Reserve will consider raising certain bank asset thresholds defined by fixed dollar amounts later this year, and introduce a mechanism to update them every five years to reflect inflation and economic growth, preventing banks from being automatically subjected to stricter regulatory requirements due to natural asset expansion.

    Bowman, speaking at the Community Banking Research Conference hosted by the St. Louis Federal Reserve, said the current fixed asset thresholds may become "miscalibrated" over time, causing smaller banks with simpler business models to bear regulatory requirements originally intended for larger or more complex institutions.

    Currently, banks with assets below USD 10 billion in the United States are generally classified as community banks. Bowman said the Fed will also study broader structural reforms for categorizing banks by asset size and update the differentiated regulatory framework for large banks.

    On the same day, she announced that the Federal Reserve will reorganize its supervisory functions into five regions, each overseen by newly appointed regional supervisors to enhance accountability and decision-making efficiency. The Fed stated that the reforms aim to focus supervision on risks that could lead to significant financial losses. (kk)