Testifying before the Senate Banking Committee Tuesday, Federal Reserve Board of Governor nominees Richard Clarida and Michelle Bowman offered their support of reducing the regulatory burden facing community-based financial institutions by better tailoring regulations. NAFCU is actively engaged on Capitol Hill, advocating for numerous legislative items that would provide much-needed regulatory relief to the financial services industry.
Clarida, a Columbia University economist, has been nominated to serve as vice chairman of the board. Bowman, bank commissioner for the state of Kansas, has been nominated to fill the board’s seat designated for a community banker or regulator of community banks.
During her testimony, Bowman discussed her time working for her family’s 135-year-old community bank in Kansas and noted that the “regulatory environment created in aftermath of crisis has disadvantaged community banks.” She said if confirmed to serve on the board, she will work to ensure “rules are appropriately tailored to size, complexity and risk of institution.”
Responding to a question from Senate Banking Committee Chairman Mike Crapo, R-Idaho, about the importance of improving financial regulations while still ensuring safety and soundness of the financial system, Clarida said that if confirmed, he will “seek out efficiencies and tailoring to specifics as much as possible, but not putting system at risk in unnecessary way.”
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