Federal Reserve member Michelle Bowman said US banks need better supervision rather than higher capital requirements because they could hinder lending and competition, repeating calls for an independent investigation into recent bank failures, according to “bloomberg”.
“We need to look at whether examiners have the appropriate tools and support to identify important issues and demand immediate remediation. Increased capital requirements simply do not reach this fundamental concern about the effectiveness of supervision,” Bowman said, during a seminar in Austria.
The US Federal Reserve member also renewed her call for the involvement of an independent third party to investigate the recent US bank collapses, criticizing the internal efforts made by the Federal Reserve to investigate these issues.
“There is a real question about whether these efforts provide an adequate account of what happened,” Bowman said.
