Federal Reserve Governor Michelle Bowman expressed concerns about the proposed plan to increase bank capital requirements, stating that while the plan has flaws, she is hopeful that legislators will reach an agreement on a final rule.

Bowman also expressed her disapproval of the “Basel endgame” proposal, which she voted against due to its onerous nature for banks.

However, she could support the rule-writing effort if regulators acknowledge industry concerns and reduce its impact.

Bowman’s recommendations may be adopted by the Fed, where Vice Chair Michael Barr is spearheading the rulewriting process.

Bowman also urged regulators to abandon stricter regulations on smaller banks, arguing that the strategy has a “fundamental flaw” that could skew how banks of that scale operate.