(Finance) – “Are we today in the same place we were at the beginning of the 2008 financial crisis? Obviously not. Although we have witnessed stress in some parts of the banking system, overall the system is strong and resilient. US banks have high levels of capital and liquidity, and banks of all sizes continue to support the economy,” he said Michelle Bowmanwhich sits on the Board of Governors of the Federal Reserve, at an event in San Antonio (Texas, USA).
“The robust set of laws and regulations we have today suggests that the problems in the banking system require a targeted solutionfocused on actual risks, improving supervision and risk management and timely remediation of supervisory problems,” he added.
Analyzing the actions to be taken, he highlighted the need for the Federal Reserve to involve an independent third party to prepare a report on recent bank failures.
Furthermore, “I believe we need to do a better job of identifying the most critical problems and moving quickly to remedy them,” he said, explaining that “it is clear that both supervisory authorities and bank top management have overlooked key and long-standing risk factors which should be an area of attention in every exam. These include concentration risk, liquidity risk and interest rate risk.”
Finally, “we should consider whether there are necessary and targeted adjustments we should make to banking regulation This will likely include a wide range of topics, including a close look at deposit insurance reform, the treatment of uninsured deposits and a reconsideration of current deposit insurance limits.”