Easing Regulations: Trump's Softer Supervision on U.S. Banks Unfolds
U.S. bank regulators are easing some supervision and disciplinary actions, reflecting a lighter approach under President Trump's administration. This shift focuses less on non-core banking issues like reputational risks and more on critical financial metrics, amid criticisms regarding the previous supervisory scope and method.
Bank regulators in the U.S. are scaling back on certain examinations and disciplinary actions, a move interpreted as a softer regulatory stance under President Trump's administration. Industry executives indicate that exams have been postponed, scaled back, or even canceled by major regulatory bodies like the OCC and CFPB.
This revised approach prioritizes more critical financial metrics, diverting focus from non-core issues such as reputational risks and climate change. Supervisors are being more selective in their use of formal disciplinary notices, opting for informal communications instead, spurring discussions around the merit of holistic supervision.
While some experts criticize this scaling back on exams due to concerns of past supervisory failures, proponents claim it will alleviate the operational burdens on lenders, with regulators committed to efficient oversight aligned with their statutory mission of financial soundness.
(With inputs from agencies.)
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