Federal Reserve Vice Chair for Supervision Michelle Bowman stated on Tuesday that the Federal Reserve plans a major overhaul of its bank supervisory system, consolidating the supervisory functions of the existing 12 regional Federal Reserve Banks into five new geographic regions, each with a dedicated "Regional Director." This aims to strengthen accountability in Washington and address the fragmented distribution of authority and responsibility. She also announced that the Federal Reserve will review updated bank asset thresholds later this year to determine when stricter supervisory rules apply to banks, and consider introducing a mechanism for automatic updates every five years to reflect changes in inflation and economic growth. Bowman noted that the current supervisory structure has flaws in the relationship between responsibility and accountability, and the committee mechanism leads to decision delays. These reforms are designed to establish a culture of accountability and clear decision-making authority, and to provide greater room for bank expansion.