Fed Official Calls for Overhaul of Post-Crisis Banking Regulations

Steve Miran, a Federal Reserve official, has urged a complete reset of banking regulations implemented after the 2008 financial crisis. "Financial regulation has increasingly restricted the banking sector for years," Miran stated, emphasizing that the broader impacts on markets, credit, and monetary policy are often overlooked.

He argued that overregulation has driven traditional banking activities into unregulated spaces. "Credit allocation should be market-driven, not shaped by regulatory arbitrage," Miran added, clarifying that his critique isn't aimed at nonbank financial firms.

The post-2008 regulatory framework, particularly stricter capital requirements like the enhanced supplementary leverage ratio, has pushed Core lending activities beyond formal oversight. Miran warned regulators against overreaction, noting that the pendulum has swung too far.

His views align with other critics, including Trump-backed officials and banking leaders, who argue that current rules penalize banks for holding low-risk assets such as Treasuries. The Fed and other regulators are reportedly reviewing these measures.