President Trump announced on Monday that Michelle Bowman, a Federal Reserve governor and former Kansas banking commissioner, has been selected as the central bank's new vice chair for supervision. This appointment is seen as a shift in oversight of large US banks, reflecting the administration's desire to ease regulatory constraints on lenders post the 2008 financial crisis.

Trump expressed confidence in Bowman's capabilities, stating that she possesses the required expertise to drive economic growth to unprecedented levels. Treasury Secretary Scott Bessent hinted at forthcoming changes in banking regulations, criticizing past policies as outdated and emphasizing the need for better coordination among regulatory bodies.

Bowman has indicated a willingness to consider changes in regulatory frameworks. She opposed certain proposals by her predecessor, Michael Barr, particularly capital rules that would demand greater reserves for potential losses based on Basel III standards implemented after the financial crisis. Bowman argued for a tailored approach to capital requirements based on each bank's size and risk profile, cautioning against the potential negative impact of stringent regulations on the economy.

Financial institutions have welcomed Bowman's nomination, with industry leaders endorsing her appointment for her understanding of regulatory and monetary policies. Senate confirmation is still pending for her role as vice chair for supervision.