The Fed announced a "major adjustment" to its banking regulatory approach.

Golden Finance reports that the Fed has detailed its expected “major adjustments” in the way regulators oversee banks, marking the latest step in an important initiative by Federal Reserve Board Governor Bowman to relax and optimize bank regulation. On Tuesday, the Fed released a three-page memorandum outlining new expectations for its bank examiners, broadly instructing staff to focus primarily on significant financial risks within banks while imposing limitations on the oversight of other matters. The memorandum details several adjustments that could significantly reduce the scope of work for the Fed's examiners responsible for ensuring banks' safety and soundness. Meanwhile, Bowman has initiated a plan to reduce the number of Fed regulators by 30% over the next year. These adjustments are expected to impact the Fed's approach to bank regulation in terms of overall stability, but will not change its limited regulatory force regarding consumer protection and fair lending laws for small banks.