WASHINGTON –The nominee to become vice chair of the Federal Reserve outlined during a congressional hearing how she would overhaul how the Fed monitors the largest banks, as well as how she encourage innovation and pursue “pragmatic” rules for the financial system.

Testifying before the U.S. Senate Banking Committee, Federal Reserve Governor Michelle Bowman called for a streamlining of the current regulatory system, and said if confirmed she he would work to ensure regulators emphasize simpler rules for smaller banks, while bank supervisors would provide clearer guidelines for the institutions they monitor.

“The U.S. regulatory framework has grown expansively to become overly complicated and redundant, with conflicting and overlapping requirements. This growth has imposed unnecessary and significant costs on banks and their customers,” Bowman told the committee her prepared testimony.

Critical of Biden Administration

Bowman has been nominated by President Donald Trump to take over as the Fed’s vice chair for supervision, its top regulatory post. A former community banker, Bowman has served on the Fed’s Board of Governors since 2018.

During her testimony, Bowman was critical of efforts by the Biden administration to impose stricter rules on the financial sector, and said a lighter touch is needed.