FRB Governor Bowman Speaks On Financial Stability

Last week, Federal Reserve Board ("FRB") Governor Michelle Bowman gave a speech entitled Financial Stability in Uncertain Times, focusing on the "financial stability risks and vulnerabilities" she is most focused on.

Gov. Bowman started her remarks on risk with the banking sector and that while the banking sector experienced stress this spring "the events of earlier this year have underscored the strength and resilience of the overall U.S. banking system." Gov. Bowman noted that the interest rate environment does create some stresses, but noted that all banks subject to this year's stress tests passed. Gov. Bowman also noted that commercial real estate values following the COVID-19 pandemic is a risk the regulators are watching closely. She also noted that she is "also closely watching other financial stability vulnerabilities posed by large nonbank financial institutions" and risks to the smooth functioning of the U.S. Treasury markets.