Fed pushing ahead with regulation relief for small banks: Powell

[WASHINGTON] The Federal Reserve continues to consider ways to ease the regulatory burden on small financial institutions, a top Fed official said on Wednesday, though the US central bank is limited in how much it can tailor the rules.

The Fed's efforts to provide regulatory relief comes amid a growing volume of complaints from the community banking industry that federal bank regulations meant for large firms are unfairly applied to small institutions that pose much less risk to the financial system.

"Unnecessary, outdated, or unduly burdensome regulations can exhaust the resources of insured depository institutions," Fed Governor Jerome Powell said on Wednesday in prepared remarks for a speech at an industry outreach event in Dallas.

Mr Powell was there to gather feedback for the Economic Growth and Regulatory Paperwork Reduction Act, a regulatory relief measure.

Mr Powell did not comment on monetary policy.

REUTERS