Federal Reserve Board Governor Susan M. Phillips said Thursday that risk-based supervision may reduce exam times by as much as 30%.

"While those results are tentative, partial, and unscientific, they are certainly encouraging," Ms. Phillips told a banking symposium at Houston Baptist University.

Ms. Phillips also said that regulators must remain particularly alert during economic booms. "Experience has demonstrated that at times like these-if we are not vigilant-risks can occur that set the stage for future problems," she said.

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