Federal Reserve to Restructure Bank Oversight into Five Regions

The Federal Reserve is planning a major overhaul of its bank oversight structure, shifting to a five-region system. Fed Vice Chair for Supervision Michelle Bowman detailed the proposal on October 6 during a meeting hosted by the Federal Reserve Bank of St. Louis.

Under the new structure, each of the five regions will have a designated leader responsible for supervisory activities. Staff at regional Federal Reserve banks will handle examinations, while the Washington headquarters will maintain overall system oversight. Bowman emphasized that the current setup lacks clear accountability and decision-making authority.

The restructuring aims to strengthen accountability and streamline supervisory responsibilities. Bowman described the plan as a step toward fostering a culture that prioritizes clear decision-making and accountability within the Fed’s oversight framework.

Additionally, the Fed plans to review and potentially adjust the asset-size thresholds that determine when banks face stricter supervisory requirements. This review is expected to take place later this year.