KEY TAKEAWAYS:

Fed releases new guidelines prioritizing material financial risks over process compliance.

Banks can self-certify certain risks and supervision matters under new rules.

Regulatory staffing at the Fed to be reduced by about 30%.

Changes praised by industry groups but criticized by former Fed vice chair Michael Barr .

The Federal Reserve ‘s top banking regulator on Tuesday released new guidelines for the agency’s supervision of the financial system, earning praise from industry trade groups and criticism from her predecessor.

In a set of sweeping changes, the principles call for bank examiners to focus on material financial risks and to “not become distracted from this priority by devoting excessive attention to processes, procedures, and documentation.” The guidelin

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