The Trump administration is easing oversight of banks

In recent months, US banking regulators have reduced the scope and number of bank inspections, reflecting the more moderate approach under President Donald Trump.

They are also using clearer guidelines for their assessments and giving banks less formal, less stringent “guidance” on how to resolve identified problems, rather than formal disciplinary letters.
This change is part of the Trump administration's broader effort to focus supervision on key financial metrics that reflect the safety of banks.

Banks welcome the lighter supervision because it gives them more freedom in decision-making and operations. Less stringent controls reduce administrative burdens and costs. On this basis, financial institutions can gain a competitive advantage over their European competitors.

Democrats and regulatory experts warn that easing oversight is risky, especially after the collapse of three banks in 2023, which was partly due to inadequate supervision.

The monetary authority said it was adjusting its approach to better fulfill its legal mandate and enable banks to promote economic growth.
(reuters, sie)