Banking regulations should allow innovation

Regulatory framework should not prevent banks from providing new and competitive products and services, Federal Reserve Gov. Michelle W. Bowman Monday says (Feb. 17).

Speaking of American Bankers Associations Conference for Community Bankers In Phoenix, Bowman said that as the framework should develop safety and the good banking system, it does not stop the operation of banks.

“Our work to keep an effective framework is never complete,” Bowman said to a speech to be sent to the activity. “As satisfaction can be fatal by a bank’s business, the satisfaction also prevents regulators to implement a safe and good service system to serve their customers effectively the service of their customers. “

In terms of bank management, Bowman said handling administrations carry a de-prioritization of main financial risks. Teaching a Fed Report said most financial institutions met management expectations, Bowman has a question that causes non-core and non-core risks that are very important.

Arrive in bank applications, Bowman says the process can have created Demediments that carry a current lack of new bank formation. He added that the regulators can improve the process by developing special skills, streaming the application process and transparency development.

In case of unites and acquisitions, Bowman says “The purgatory of a long application process” can be resolved by updating application forms to include all information required and by following approval timelines.

Regulatory response, Bowman said the body of regulations used by banks that have been grown from the 2008 regulations in 2008 and some of the financial regulations, with no reason.

“The banking system can be an economic growth and opportunity, especially if it is supported by a bank framework that is reasonable and maintained,” Bowman. “The act of reasoning and maintaining this system is a continuous cycle. While my comments are now touching a wide range of issues that require reasoning and ‘maintenance,’ this is not a meaningful list.”