In his speech to the American Bankers Association's annual convention in Phoenix on Monday, Federal Reserve chairman Alan Greenspan said that few regulatory changes are needed for the majority of banks in the U.S. However, regulators are looking into increasing the level of supervision of the country's largest banks because of the negative impact they could bring upon the U.S. economy should they falter.
Greenspan said government oversight of the big banks needs to be designed specifically for each institution since no two banks look or operate in the same way. He believes a more customized approach to oversight will better address each institution's intricate structure and risk controls.
While speaking to the industry's largest association group, Greenspan was careful to point out that steps will be taken to ensure that government regulation does not hamper innovation or competition within the industry.