Treasury Secretary Scott Bessent addressed the Federal Reserve Capital Conference, emphasizing the need for financial regulatory reform. He praised Vice Chair Bowman for her efforts and shared a commitment to prioritizing issues affecting community banks.
Bessent highlighted the Treasury Department's role in reshaping financial regulation to benefit both Wall Street and Main Street. He noted that recent initiatives include recalibrating leverage capital requirements, rescinding complex rules, and modernizing the regulatory capital framework.
He criticized the current reactive approach to financial regulation, which he described as lacking a strategic vision. Bessent argued for proactive measures to prevent crises rather than responding after they occur.
The Treasury aims to drive policy that supports economic growth while maintaining stability and security. Bessent stressed that bank regulators should focus on how proposed rules impact growth and prioritize community banks' viability.
Bessent expressed concerns about outdated capital requirements imposing unnecessary burdens on financial institutions. He called for modernizing these requirements to encourage lending within regulated systems rather than pushing it toward nonbank intermediaries.
In conclusion, Bessent reiterated support for regulatory modernization and emphasized collaboration with economic policymakers at the Fed to preserve community banks' central role.
