A governor at the Federal Reserve Board argued banking regulators should move from their current reactive posture on banking innovation to a position that actively encourages new technologies, business models, and ideas to solve age-old problems.

In a speech delivered Wednesday at an industry event, Michelle Bowman said there are good reasons why regulators often look critically at innovation in banking, but that they need to begin prioritizing innovation.

Aaron Nicodemus is the Editor-in-Chief of Compliance Week. He previously worked as a reporter for Bloomberg Law and as business editor at the Telegram & Gazette in Worcester, Mass. Email: aaron.nicodemus@complianceweek.com LinkedIn:...