Federal Reserve's governor Michelle Bowman said on Friday that the Fed should consider necessary and targeted adjustments to banking regulation, including taking a close look at deposit insurance reform, the treatment of uninsured deposits, and a reconsideration of current deposit insurance limits.
Also, the official said that concerned about calls for casting aside tiering expectations for less complex institutions and shifting away from tailoring and risk-based supervision. She added that tailoring bank regulation and supervision based on the size and risk profile of banks is, in her view, critical.
In addition, Bowman repeated a call for the Fed to engage an independent third party to analyze the recent failures in the U.S. banking sector, so the central bank can fully understand what led to these failures. She, however, warned against using these bank failures as a pretext to push for unrelated changes to bank regulation.