Federal Reserve Board Chairman Alan Greenspan cautioned banking regulators Thursday not to become overly rigid in evaluating banks' efforts to manage risk.

While firmly endorsing the new supervisory focus on risk management, Mr. Greenspan expressed concern that examiners could get carried away and require banks to eliminate all risk.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.