NEW YORK – Protecting the financial system has “costs,” but despite that, regulators should try to minimize costs, Federal Reserve Board Governor Elizabeth A. Duke said Friday.
“The bottom line is that doing the necessary work of protecting our financial system and its customers comes with a cost. But that doesn’t mean that we shouldn’t continue to try to at least limit the burden,” she told a Bank Presidents Seminar in Santa Barbara, Calif., according to prepared text released by the Fed.
The cost of regulatory compliance hits smaller institutions disproportionately. “Financial supervisors must be vigilant in efforts to maintain financial system stability and ensure that consumers are able to understand their financial product choices, no matter where they choose to bank.”
Her speech did not touch any monetary policy issues.
