PANews reported on March 3 that Federal Reserve Governor Bowman stated that regulators should assess the impact of their liquidity rules on lending institutions during turbulent times and address weaknesses in the framework. Bowman stated that while the components of liquidity requirements are supposed to work together to reduce the risk of bank failures, the framework does not take into account the actual performance of lending institutions during periods of stress. In prepared remarks for an event in Washington, Bowman said, “We need to understand whether these tools have truly delivered the promised resilience, or whether we have created a framework that looks perfect on paper but fails to capture the vulnerabilities that emerge during periods of stress. It’s time to move beyond the question of ‘whether banks are compliant’ and instead explore whether ‘compliance has truly translated into resilience.’” Previously, the Federal Reserve had considered adjusting its liquidity framework, including requirements designed to protect uninsured depositors, but that potential Biden-era plan was never finalized.