Feds Bowman says banking regulations not to blame for SVB failure

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(Bloomberg) – U.S. banking regulation was not to blame for the recent failures of two midsize lenders, according to Federal Reserve Governor Michelle Bowman.

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Bowman, who was appointed to the central bank by President Donald Trump, is the latest official to weigh in on the causes of the failures of Silicon Valley Bank, SVB and Signature Bank. His comments appear to contrast with those of Michael Barr, the Fed’s top banking regulator, who recently said supervisors could have done more to keep tabs on SVB before it collapsed.

I don’t believe the failure of these two institutions is an indictment of the broader regulatory landscape, Bowman said in prepared remarks for a speech at the Wharton Business School in Philadelphia.

Bowman also said that the US banking system remains stable even after the banks collapse. The central bank is currently learning more about the failure of the SVBs. If we identify gaps in oversight and regulation, we should and will fix those gaps, Bowman said.

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