Fed’s Bowman Cautions Against ‘Radical Reform’ of Bank Oversight

Federal Reserve Governor Michelle Bowman repeated her call for a third-party probe into the failure of Silicon Valley Bank and pushed back against calls for increased regulation on smaller lenders in response to the recent banking strains.

Michelle Bowman, governor of the U.S. Federal Reserve.

Photographer: Andrew Harrer/Bloomberg

“The view that we extend the reach of overly complex and outsized regulatory requirements to banks that are smaller and less complex ignores some likely results—doing so will lead to bank consolidation, and will potentially push banking activities outside of the regulated banking system,” Bowman said Friday in San Antonio at a Texas Bankers Association conference.

“This is surely not the outcome ...