Fed to Restructure Bank Supervision Into Five Regions With New Oversight System Starting Early 2027

Federal Reserve Governor Michelle Bowman announced plans to overhaul the Fed's bank supervisory structure, reorganizing it into five regional groupings from its current arrangement. The new system is targeted to launch in early 2027, with the Fed planning to advertise for new regional leader positions over the coming months.

Bowman also said the Fed would soon consider raising bank asset thresholds, including a review of fixed-dollar asset thresholds expected within this year. Those thresholds determine which regulatory requirements apply to banks of different sizes, meaning any upward revision could ease compliance burdens for a broad range of institutions.