Mars Finance reports that on October 6, the Federal Reserve plans to overhaul the U.S. banking regulatory system, replacing the current model—in which regional Federal Reserve Bank presidents oversee bank examinations—with a new structure that places clearer responsibility on its Washington headquarters. The Fed’s top banking regulator announced the reform plan on Tuesday. Michelle Bowman, the Fed’s vice chair for supervision, said the changes would establish five geographic regions for bank supervision, each led by a “regional lead.” In remarks prepared for a meeting at the Federal Reserve Bank of St. Louis, Bowman said the current structure “weakens the vital link between responsibility and accountability.” Bowman said: “The Federal Reserve’s supervisory function will be realigned to establish a culture that emphasizes accountability and clear decision-making authority.” Under the new supervisory framework, the five regional leads will be responsible for all supervisory activities in their respective regions. However, examinations themselves will continue to be conducted by staff at the regional Federal Reserve Banks. Bowman also announced that the Fed will consider adjusting asset-size thresholds later this year. These thresholds determine when banks become subject to stricter regulatory requirements.