U.S. Democratic Senator Warren: Calls for Bowman to stop the international policy of "providing preferential treatment to large European banks"

U.S. Senate Democrat member Warren has called on Federal Reserve Governor Bowman (head of the Financial Stability Board's Standing Committee on Supervisory and Regulatory Cooperation) to halt an international policy.

Warren believes that the policy gives preferential treatment to the largest lending institutions in Europe regarding capital requirements.

"This change is unreasonable and unnecessarily increases the risks posed by systemically important European banks... The Financial Stability Board (FSB) will decide in November whether to extend this special treatment for another year."

The decision made by global regulators in 2022 created an unfair competitive environment for U.S. banks, as the largest European banks face lower capital costs when operating within the Eurozone compared to other international businesses.

The policy reduced the international costs of risks within the Eurozone to reflect Europe's progress in achieving a banking union, but Warren argues that "Europe is not a single country," and this effort is "far from complete."