Randal K Quarles: Supervision and regulation report

Testimony of Mr Randal K Quarles, Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, before the Committee on Financial Services, US House of Representatives, Washington DC, 4 December 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Chairwoman Waters, Ranking Member McHenry, members of the committee, thank you for the opportunity to appear today, alongside my colleagues from the regulatory community. We join you on the cusp of a significant and shared milestone: the full and faithful implementation of Congress's efforts to improve financial regulation, in the form of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).  Today, I will briefly review the steps we have taken toward this milestone; share information on the state of the banking system, from the report that accompanies my testimony; and discuss the continuing need to ensure our regulatory framework is both coherent and effective.

 Roughly 18 months ago, Congress passed legislation to consolidate a decade of work on financial reform, and to better tailor financial regulation and supervision to the risks of the institutions being regulated.  The EGRRCPA was a specific, targeted response to the conditions facing today's banking organizations and their customers.  It was also rooted, however, in long standing congressional practice: of reviewing the work done in the immediate aftermath of a crisis; of addressing any gaps; and of ensuring that public and private resources go toward their best, most efficient use.