Bowman Says Banks Need ‘Flexibility’ to Compete With Non-Banks

Federal Reserve Vice Chair for Supervision Michelle Bowman said that while the banking system remains strong, it is important that traditional lenders be given tools and flexibility to “compete effectively.”

“Non-bank financial institutions continue to increase their share of the total lending market, creating strong competition for regulated banks without facing the same capital, liquidity, and other prudential standards,” Bowman said in prepared remarks for a Senate Banking Committee hearing.

Trump-era regulators recently eased post-crisis rules that spurred complaints from bankers they were being sidelined by too much regulation amid rapid growth in the private credit industry. Officials have also ...