Bloomberg Talks Fed Governor Michelle Bowman Talks Debanking, Regulation
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Aug 19, 2025 
Michelle Bowman, Governor of the Federal Reserve System and Vice Chair for Supervision, dives into crucial topics with Michael McKee. She discusses her dissenting opinions on monetary policy and emphasizes the Fed’s commitment to tackling debanking and reputational risks within the banking system. Bowman advocates for regulatory reforms to support emerging industries while navigating the complexities of financial regulations like Basel III. She also addresses the evolving regulatory landscape and the importance of collaboration with Congress for effective banking oversight.
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Fed Changed Guidance To Curb Debanking
- The vice chair for supervision role oversees Fed supervision and regulation created by Dodd-Frank after the financial crisis.
- Bowman rescinded guidance referencing reputational risk to prevent exam-driven debanking of lawful customers.
Flag Debanking Cases For Fed Review
- Encourage banks and exam teams to avoid using reputational risk as a reason to deny lawful customers access to banking.
- Bowman urges reporters and bankers to flag instances so the Fed can investigate and correct problems.
Digital-Assets Oversight Integrated Into Exams
- The Fed disbanded its separate novel supervision group and folded digital-asset learnings into regular reserve bank exam teams.
- Bowman frames digital-asset activity as allowable under Congress' support and seeks clear frameworks for bank participation.