WASHINGTON–While credit unions do not fall under Fed supervision, many banks do and direction set by the Fed can influence the kind of oversight credit unions experience, a scenario that may only grow more likely should the Trump Administration look to consolidate regulators.

That’s why it’s worthwhile to pay attention to statements and priorities Michelle Bowman has made in the past, according to one report. Bowman has been nominated to be the new vice chairman for supervision for the Fed. 

To get a sense of where banking regulation may be headed, Pymnts.com reviewed positions Bowman has outlined in the past. 

The report notes that in the past Bowman has advocated for “regulatory tailoring,” a shift from the movement after the failure of Silicon Valley Bank, where “we saw a wide range of regulatory proposals. These have included substantial increases in bank capital requirements and pushing down global systemically important bank and large bank requirements to much smaller firms.

“Tailoring can help ensure regulators focus on the most critical risks over time and avoid the over-allocation of resources or imposition of unnecessary costs on the banking system,” Bowman continued in a speech she made in January.

Potential ‘Consolidation’

According to comments attributed to Bowman by Pymnts.com,  sweeping capital requirements could lead to “substantial industry consolidation.” A more transparent process will prove “especially important as digital assets and artificial intelligence are becoming increasingly more prevalent in the financial system.”

Pymnts.com said in its analysis there is “some evidence” Bowman would look to streamline the banking application process. It noted that in remarks made on March 21 tied to a California bank’s setting up a branch in New Jersey, Bowman said an adverse comment during the commentary period led to months of delay.

“This case is emblematic of the current deficient approach to processing applications in cases where a member of the public has made an adverse comment, particularly when the recent supervisory record addresses the concerns raised and is consistent with approval,” Bowman said. “It is time for the board to revisit its current approach to adverse comments.”

Digital Solutions

Pyments.com also pointed to comments Bowman has made in the past about digital assets, innovations and fintech in which she said there is a need to  “prioritize how we integrate innovation as we revise or enhance regulatory frameworks.”