Fed’s Bowman Wants to See Banks Boost Small-Business Lending

Federal Reserve Governor Michelle Bowman said eased capital requirements could encourage US banks to expand loans for small businesses.

“Supporting credit for small businesses is critical to our economy,” Bowman said Tuesday in prepared remarks for the Consumer Bankers Association. “Our regulatory framework must provide access to capital for these businesses to ensure our rules support the economy.”

The Fed and other banking agencies earlier this month proposed relaxed capital requirements that they say would bolster residential mortgage, consumer and corporate loans. The plans represented a major win for Wall Street after banking groups fiercely campaigned against a 2023 plan ...