Federal Reserve calls for overhaul of bank supervision after SVB collapse

Bowman: Michelle Bowman is the Federal Reserve's Vice Chair for Supervision, a role in which she leads efforts on bank oversight and regulatory policy. In recent remarks, she emphasized an independent review of Silicon Valley Bank's failure as justification for overhauling supervision to address issues of uncertainty and accountability. Federal Reserve: The Federal Reserve serves as the central bank of the United States, overseeing monetary policy and the supervision of the banking system. Michelle Bowman, its Vice Chair for Supervision, recently used findings from an independent review to advocate for updates to bank oversight practices following the Silicon Valley Bank collapse. Silicon Valley Bank: Silicon Valley Bank was a prominent financial institution focused on technology and venture capital clients that failed in 2023. A new independent review of its collapse, discussed by Federal Reserve officials in October 2026, underscores shortcomings in prior supervision and supports calls for broader regulatory modernization. Regulation: Federal Reserve Vice Chair Michelle Bowman advocated for a complete reorganization of the central bank's supervision framework to clarify decision-making authority and improve accountability. Bank Oversight: An independent review commissioned by Bowman determined that Federal Reserve supervisors had identified major risks at Silicon Valley Bank many months before its 2023 failure but were hindered by unclear accountability structures.