Michael Barr, the Federal Reserve’s top banking regulator, will resign as vice chair for supervision effective February 28, allowing President-elect Donald Trump to appoint a replacement.

Barr, who will remain a Fed governor until 2026, said his decision was made to avoid distractions from the Fed’s mission.

His resignation comes amid speculation that Trump may seek a more bank-friendly replacement.

Bank stocks rose following the announcement, and the Fed indicated it would delay major regulatory decisions until a successor is named, CNBC News has reported.

Barr’s tenure included overseeing the aftermath of the 2023 Silicon Valley Bank collapse.

Written by B.C. Begley