Bowman plans to cut 30% of staff in the U.S. banking regulatory department within three years

Jinse Finance reported that, according to internal memos obtained by US media and sources familiar with the matter, Federal Reserve Vice Chair for Supervision Bowman stated at an internal meeting on Thursday that the bank supervision and regulation department will undergo restructuring. It is expected that by the end of 2026, the department's staffing will be reduced from nearly 500 people to about 350, a decrease of 30%. The layoffs will mainly be achieved through natural attrition, retirements, and voluntary departure programs. This restructuring coincides with Bowman and other US regulatory agencies pushing to ease bank capital requirements and refocus regulatory priorities. The plan also aligns with the Federal Reserve's overall layout to cut 10% of its system-wide staff in the coming years and is consistent with the Trump administration's macro direction of downsizing US financial regulatory agencies. According to sources, Bowman emphasized at the internal meeting on Thursday that regulatory departments should focus on the substantive risks of banking institutions and avoid getting entangled in procedural matters that do not affect the sound operation of financial institutions.