In improving the oversight of large firms, the Federal Reserve has made it a top priority to ensure that we appropriately tailor our regulation and supervision of banks to their size, complexity, and risks. We will use statutory authorities to ensure that we avoid a one-size-fits-all approach as we promulgate rules and regulations.
As part of its Agenda for America’s Hometown Banks, ABA has been encouraging Congress and the prudential regulators to employ tailored regulation in recognition of the diversity of the banking industry and to avoid imposing unnecessary regulation on banks whose business models do not warrant it. Yellen joins Fed Governor Daniel Tarullo and Comptroller of the Currency Thomas Curry in endorsing a tailored approach to supervision.
Read the speech.