Bessent Plans Greater Treasury Role in Bank Regulation

Treasury Secretary Scott Bessent announced plans for a greater Treasury role in banking regulation, aiming to alleviate burdens on community banks and ensure lending policies align with financial risks. During his address to the American Bankers Association, he emphasized the need for 'commonsense principles' in regulations, particularly to ease compliance for smaller banks that have been affected by rules designed for larger institutions. Bessent criticized past regulatory practices for lacking accountability and transparency, advocating for a regulatory framework that is efficient and fair. He highlighted the importance of community bankers in revitalizing local economies during the Trump administration, asserting their understanding of the needs of Main Street. The Treasury will utilize the Financial Stability Oversight Council and the President's Working Group on Capital Markets to implement these changes. Bessent's remarks indicate a shift towards deregulation, which he believes will foster economic growth and improve lending conditions for American families.