The recent legislation requires the Board to tailor its framework of supervision and regulation of large firms in a manner that continues to recognize size as one risk factor, but also more holistically incorporates other risk categories. In implementing this legislation, we should consider tailoring regulation further to take into account large banks’ complexity and interconnectedness.
Of course, the details of how we implement a tailored framework will be subject to debate, and you can expect the Federal Reserve to be highly engaged in the public feedback process. Implementing the Economic Growth, Regulatory Relief, and Consumer Protection Act is a high priority for the Board, and we look forward to hearing the range of views as we make progress.