OPINION:
President Trump’s announcement signaling his intention to nominate Kansas banking commissioner Michelle “Miki” Bowman to the Federal Reserve Board of Governors was a step in the right direction.
The burdensome rules and complex regulation resulting from the Dodd-Frank Act and the creation of the Consumer Financial Protection Bureau (which effectively added another financial regulator) have substantially increased compliance and operating costs at all banks. U.S. community banks continue to support the majority of small-business banking and lending, and they represent the lion’s share of banking organizations in the nation (92 percent of insured financial institutions).
In this environment, it has never been more important to have a community banker’s voice on the board. Changing the structure and composition of the board will hopefully improve regulatory and supervisory policy. The board must place more priority and direct focus on this area, and speed its decision-making to support a healthy banking system.
With one remaining spot left on the seven-member board, there is a transformational opportunity to add an experienced international banker who will continue to broaden the expertise of the board so that it may exercise all its responsibilities, from economics to banking, effectively.
Having three board members with banking experience, plus an international banker and a community banker, will ensure the board is highly capable of fulfilling its mandate for the American people. A more balanced board will better position the Federal Reserve System to be truly responsive to the needs of the banking industry and place more focus on strengthening our nation’s economy.
DREW J. BREAKSPEAR
Commissioner, Florida’s Office of Financial Regulation
Tallahassee, Florida
Please read our comment policy before commenting.