MNI BRIEF: Fed's George Urges Discretion in Bank Disclosures

Greater bank disclosures would strengthen the fairness and stability of the financial system, but supervisors should have some discretion over the release of sensitive supervisory information, Federal Reserve Bank of Kansas City President Esther George said Friday.

Protecting banks' customer data, proprietary market intelligence, and keeping some candid supervisory assessments confidential to protect bank safety also contribute to effective supervision and build trust with regulators, she said at a Fed conference.

"Incorporating some degree of supervisory discretion rather than prescriptive statements or standards will likely be necessary," she said.