1、毕业论文外文翻译外文题目COMMUNITYBANKSANDTHEFEDERALRESERVE出处ECONOMICREVIEW作者THOMASMHOENIG原文THANKYOUFORINVITINGMETOPARTICIPATEINTHISCONFERENCEON“WHITHERTHECOMMUNITYBANK”IAPPLAUDTHEFEDERALRESERVEBANKOFCHICAGOFORSPONSORINGACONFERENCEONTHISIMPORTANTTOPICCOMINGFROMAFEDERALRESERVEDISTRICTTHATISWELLSERVEDBYSCORESOFCOM
2、MUNITYBANKS,IAPPRECIATETHEOPPORTUNITYTOGIVEMYPERSPECTIVEONTHEROLETHESEBANKSPLAYINKEYSECTORSOFTHEECONOMYANDINTHEFEDERALRESERVESMISSIONWHILEIWASUNABLETOBEHEREFORTHEDISCUSSIONYESTERDAY,IWASPLEASEDTOSEEFROMTHEPROGRAMTHATYOUARETACKLINGSOMECRITICALISSUESWITHRESPECTTOCOMMUNITYBANKING,ANDILOOKFORWARDTOANINF
3、ORMATIVEDISCUSSIONTODAYMYPLANTHISMORNINGISTOTALKFIRSTABOUTTHEROLECOMMUNITYBANKSPLAYINTHEUSECONOMYTHEN,IWILLTURNTOAMOREDETAILEDDISCUSSIONOFHOWTHEYRELATETOEACHOFTHEFEDERALRESERVESTHREEMISSIONSMONETARYPOLICY,BANKINGSUPERVISIONANDREGULATION,ANDTHEPAYMENTSSYSTEMMYCENTRALTHEMEISTHATWHILECOMMUNITYBANKSHOLD
4、ONLYASMALLSHAREOFTHENATIONSBANKINGASSETS,THEYPROVIDEIMPORTANTFINANCIALSERVICESTOSOMEKEYSECTORSOFTHEECONOMYTHEIRIMPORTANCEINTHEECONOMY,INTURN,SUPPORTSTHEFEDERALRESERVESINTERESTINANDOVERSIGHTOFCOMMUNITYBANKSINFACT,COMMUNITYBANKSPLAYSIGNIFICANT,THOUGHPERHAPSNOTEQUAL,ROLESINEACHOFTHEFEDERALRESERVESTHREE
5、MISSIONSTHUS,THEFEDERALRESERVEHASASTRONGINTERESTINUNDERSTANDINGISSUESFACINGCOMMUNITYBANKSANDINHELPINGTOMAKEPOSSIBLETHEIRCONTINUEDPARTICIPATIONINTHENATIONSFINANCIALANDPAYMENTSSYSTEMSROLEOFCOMMUNITYBANKSINTHEUSECONOMYLETMEBEGINWITHADISCUSSIONOFTHECURRENTROLEOFANDFUTUREPROSPECTSFORCOMMUNITYBANKSINTHEUS
6、ECONOMYMYDISCUSSIONISBASED,INPART,ONASTUDYPREPAREDBYSTAFFATTHEFEDERALRESERVEBANKOFKANSASCITYTHISSTUDYCONTAINSTHEDETAILSANDTHEDATATHATSUPPORTMUCHOFWHATIPLANTOSAYBUTRATHERTHANREPEATTHATFORYOUNOW,IWILLINSTEADREFERYOUTOTHESTUDYITSELF,WHICHALSOAPPEARSINTHISISSUEOFECONOMICREVIEWCURRENTROLEOFCOMMUNITYBANKS
7、LOOKINGATHOWCOMMUNITYBANKSCONTRIBUTETOTHEECONOMYTODAY,IWOULDSAYTHEYPROVIDEIMPORTANTFINANCIALSERVICESTOSOMEKEYSECTORSOFTHEECONOMYSERVICESFORWHICHTHEREAREFEW,IFANY,SUBSTITUTESWHILETHEYACCOUNTFORARELATIVELYSMALLSHAREOFTOTALBANKINGACTIVITYINTHEUNITEDSTATES,THEYREMAINHIGHLYIMPORTANTINSOMETYPESOFCOMMUNITI
8、ESANDINSOMEPARTSOFTHECOUNTRYCOMMUNITYBANKSAREESPECIALLYIMPORTANTINRURALCOMMUNITIES,ACCOUNTINGFOR58PERCENTOFALLBANKINGOFFICESINRURALLOCATIONSAND49PERCENTOFDEPOSITSALTHOUGHTHEYACCOUNTFORAMUCHSMALLERSHAREOFURBANBANKINGACTIVITY,COMMUNITYBANKSALSOPLAYANIMPORTANTROLEINSMALLERMETROAREASINMETROAREASWITHLESS
9、THAN1MILLIONPEOPLE,FOREXAMPLE,COMMUNITYBANKSOPERATE31PERCENTOFALLBANKINGOFFICESANDCONTROL23PERCENTOFALLDEPOSITSCOMMUNITYBANKSALSOAREMOREIMPORTANTINSOMEFEDERALRESERVEDISTRICTSTHANOTHERSWHILECOMMUNITYBANKSACCOUNTFORABOUTATHIRDOFALLBANKINGOFFICESINTHENATIONASAWHOLE,THEYACCOUNTFORHALFORMOREOFALLBANKINGO
10、FFICESINTHREEFEDERALRESERVEDISTRICTSSTLOUIS,MINNEAPOLIS,ANDKANSASCITYINEACHOFTHESEDISTRICTS,COMMUNITYBANKSALSOCONTROLMORETHAN40PERCENTOFDEPOSITSONEREASONCOMMUNITYBANKSAREMOREIMPORTANTINTHESEDISTRICTSISTHATAHIGHERPERCENTOFTHEIRPOPULATIONLIVEINRURALAREASANDSMALLURBANAREASTHANINTHENATIONASAWHOLEBUTDEMO
11、GRAPHICSARENOTTHEONLYREASONANOTHERFACTORCONTRIBUTINGTOTHEPROLIFERATIONOFCOMMUNITYBANKSINTHESEDISTRICTSWASTHEREGULATORYENVIRONMENTTHAT,UNTILRELATIVELYRECENTLY,RESTRICTEDINTERSTATEBANKINGINTHEMIDWESTANDTHEREBYLIMITEDTHESIZEOFBANKSINTHATPARTOFTHECOUNTRYBESIDESPROVIDINGBANKINGSERVICESINRURALAREAS,SMALLE
12、RCITIES,ANDINTHEMIDDLEOFTHECOUNTRY,COMMUNITYBANKSALSOSPECIALIZEIN“RELATIONSHIPBANKING”THEYBASEDECISIONSONPERSONALKNOWLEDGEOFCUSTOMERSCREDITWORTHINESSANDAKEENUNDERSTANDINGOFBUSINESSCONDITIONSINTHECOMMUNITIESTHEYSERVETHISMARKETNICHEISARGUABLYNOTAFOCALPOINTFORLARGEBANKINGORGANIZATIONSTHATHAVECOMETORELY
13、HEAVILYONHARDFINANCIALINFORMATION,COMPUTERMODELS,ANDCENTRALIZEDDECISIONMAKINGASTHEBASISOFCONDUCTINGBUSINESSTHREETYPESOFCUSTOMERSDEPENDHEAVILYONTHE“RELATIONSHIPBANKING”MODELTHATCOMMUNITYBANKSPROVIDESMALLBUSINESSES,FARMERS,ANDDEPOSITORSWITHLOWTOMODERATEWEALTHCOMMUNITYBANKSROLEASSMALLBUSINESSLENDERSISI
14、MPORTANTBECAUSESMALLBUSINESSESACCOUNTFORASIGNIFICANTSHAREOFNATIONALOUTPUTANDEMPLOYMENTINADDITION,MANYSMALLBUSINESSESAREYOUNGANDTENDTOGROWRAPIDLY,CREATINGSCORESOFNETNEWJOBSINTHEPROCESSFORTHESEBUSINESSES,COMMUNITYBANKSHAVEWORKEDTOCREATEACOMPARATIVEADVANTAGEFORTHEMSELVESASASOURCEOFCREDITTHEIRLOANOFFICE
15、RSCANTAKEINTOACCOUNTAVARIETYOFFACTORSINREVIEWINGLOANAPPLICATIONS,INCLUDINGTHECHARACTEROFTHEBORROWERANDSPECIALFEATURESOFTHELOCALMARKETANDBECAUSECOMMUNITYBANKERSMAINTAINCLOSE,LONGTERMRELATIONSHIPSWITHTHEIRBORROWERS,THEYCANCAREFULLYMONITORTHEBORROWERTHROUGHOUTTHETERMOFTHELOANWITHTHISAPPROACHASTHEIROPER
16、ATINGMODEL,ITISNOTSURPRISINGTHATCOMMUNITYBANKSMAKEMORETHANTHEIRSHAREOFSMALLBUSINESSLOANSBYONEMEASURE,COMMUNITYBANKSACCOUNTEDFOR33PERCENTOFSMALLBUSINESSLOANSMUCHLARGERTHANTHEIRSHAREOFDEPOSITS19PERCENTORTHEIRSHAREOFASSETS15PERCENTFURTHERMORE,FORVERYSMALLBUSINESSLOANSTHOSEUNDER100,000,THESHAREOFCOMMUNI
17、TYBANKSWASEVENHIGHER,36PERCENTCOMMUNITYBANKSALSOPROVIDEMORETHANTHEIRSHAREOFCREDITTOFARMERSTHISISNOTSURPRISINGGIVENTHEIMPORTANCEOFCOMMUNITYBANKSINRURALAREASANDTHEFACTTHATONEINFOURRURALCOMMUNITIESDEPENDSHEAVILYONFARMINGFOREMPLOYMENTANDINCOMEOFTHETOTALAMOUNTOFBANKLOANSTOFARMERSINJUNE2002,COMMUNITYBANKS
18、PROVIDED65PERCENTOFFARMREALESTATELOANSAND61PERCENTOFALLFARMOPERATINGLOANSTHESHAREOFCOMMUNITYBANKSISESPECIALLYHIGHFORSMALLFARMLOANS,EXCEEDING80PERCENTFORFARMLOANSUNDER100,000THERELATIONSHIPBASEDSERVICESTHATCOMMUNITYBANKSPROVIDEARENOTONLYIMPORTANTTOSMALLBORROWERSBUTALSOTOMANYDEPOSITORSINPARTICULAR,DEP
19、OSITORSOFLOWTOMODERATEWEALTHAREPERHAPSMORELIKELYTORECEIVEPERSONALSERVICEFROMACOMMUNITYBANKTHANTHEYAREFROMALARGEBANKINGORGANIZATIONONEPOSSIBLEREASONFORTHISISTHATSMALLBANKSAREMOREHEAVILYDEPENDENTONRETAILDEPOSITSFORTHEIRFUNDSTHANLARGEBANKSANOTHERREASONISTHATLARGEBANKSTENDTOSPECIALIZEINLESSPERSONAL,TRAN
20、SACTIONSBASEDDEPOSITSERVICESWHERETHEYHAVEACOMPARATIVEADVANTAGEOVERCOMMUNITYBANKSBECAUSEOFTHEIRSIZEANDACCESSTOTECHNOLOGYINSHORT,COMMUNITYBANKSAREANIMPORTANTPROVIDEROFSERVICESINTHOSEAREASWHERERELATIONSHIPBASEDBANKINGISIMPORTANTWHETHERITSSMALLBUSINESSLENDING,FARMLENDING,ORHOLDINGRETAILDEPOSITSFORCUSTOM
21、ERSWHOPLACEAPREMIUMONPERSONALSERVICEOUTLOOKFORCOMMUNITYBANKSWHATABOUTTHEFUTURETHOUGHWILLCOMMUNITYBANKSCONTINUETOPLAYANIMPORTANTROLEINTHEBANKINGSYSTEMASTECHNOLOGYANDMARKETCONDITIONSCHANGEMYVIEWISTHATTHEYWILLALTHOUGHTHENUMBEROFCOMMUNITYBANKSWILLCONTINUETODECLINE,THEYWILLREMAINANIMPORTANTPROVIDEROFFINA
22、NCIALSERVICESFORTHEFORESEEABLEFUTURETHEYWILLCONTINUETONUMBERINTHETHOUSANDSONEREASONTOBELIEVETHATCOMMUNITYBANKSWILLREMAINVIABLEISTHAT,ASAGROUP,THEYCONTINUETOPERFORMWELLBYSTANDARDPERFORMANCEMEASURESSUCHASRATEOFGROWTH,RATEOFENTRY,ANDPROFITABILITYTOBESURE,PROFITABILITYHASDECLINEDINRECENTYEARSATVERYSMALL
23、BANKS,BUTATLEASTSOMEOFTHATDECLINEAPPEARSDUETOTHECONCENTRATIONOFTHESEBANKSINDECLININGRURALAREASPUTANOTHERWAY,THEDECLINEINPROFITABILITYATVERYSMALLBANKSSINCETHEMID1990SMAYSAYMOREABOUTTHELOCALECONOMIESINWHICHTHEYOPERATETHANTHEVIABILITYOFCOMMUNITYBANKINGASABUSINESSMODELTHUS,WHILETHENUMBEROFVERYSMALLCOMMU
24、NITYBANKSMAYDWINDLE,THERECENTRECORDSUGGESTSTHATCOMMUNITYBANKSLOCATEDINMOREPROSPEROUSAREASSHOULDTHRIVEWHATABOUTTHECHALLENGEFROMADVANCESININFORMATIONANDCOMMUNICATIONSTECHNOLOGYISTECHNOLOGICALCHANGEREDUCINGTHECOMPARATIVEADVANTAGEOFCOMMUNITYBANKSINPROVIDINGRELATIONSHIPBASEDSERVICESCANTHEINCREASEDAVAILAB
25、ILITYOFFINANCIALDATA,THEGROWINGUSEOFCREDITSCORINGMODELS,THESECURITIZATIONOFSMALLBUSINESSLOANS,ANDTHEPROLIFERATIONOFONLINEBANKINGTHREATENTHEFUTUREOFCOMMUNITYBANKSMYVIEWISTHATEVENINTHEFACEOFADVANCINGTECHNOLOGY,COMMUNITYBANKSWILLRETAINIMPORTANTADVANTAGESFOREXAMPLE,GIVENTHEHIGHRATEOFNEWBUSINESSFORMATION
26、,THEREWILLALWAYSBESOMEBUSINESSESTHATHAVEWORTHWHILEINVESTMENTPROJECTSBUTCANNOTPASSACREDITSCORINGTESTMANYBUSINESSESARESIMPLYTOONEWTOHAVEESTABLISHEDCREDITHISTORIES,ANDMANYNEWBUSINESSOWNERSHAVETOOFEWPERSONALASSETSTOOFFERASCOLLATERALINOTHERAREAS,SUCHASONLINEBANKING,TECHNOLOGICALADVANCESREQUIRESUBSTANTIAL
27、INVESTMENTS,ANDSMALLBANKSHAVETENDEDTOLAGBEHINDTHEIRLARGERCOUNTERPARTSNEVERTHELESS,AGOODCASECANBEMADETHATCOMMUNITYBANKSWILLBEABLETOCATCHUPOVERTIMEANDCOMPETEEFFECTIVELYFORONLINECUSTOMERSCOMMUNITYBANKSMAYBEABLETOLEARNFROMTHEMISTAKESOFLARGERBANKSTHEYMAYBEABLETOCOMPENSATEFORTHEIRINABILITYTOMAKELARGESCALE
28、TECHNOLOGYINVESTMENTSBYPARTIALLYOUTSOURCINGTHEIRDATAPROCESSINGTHEYMAYBEABLETOPROVIDEAGREATERCHOICEOFFINANCIALSERVICESONLINEWHILECONTINUINGTOPROVIDEPERSONTOPERSONSERVICETHROUGHBRICKANDMORTAROFFICESAND,THEYMAYBEABLETOFINDINNOVATIVEWAYSTOWORKTOGETHERTOACHIEVEGREATERECONOMIESOFSCALELOOKINGTOTHEFUTURE,TH
29、EN,MYVIEWISTHATCOMMUNITYBANKSWILLCONTINUETOHAVEANIMPORTANTROLETOPLAYINPROVIDINGRELATIONSHIPORIENTEDSERVICESCOMMUNITYBANKSTHATAREWELLMANAGED,EQUIPPEDWITHAPPROPRIATETECHNOLOGIES,ANDLOCATEDINVIABLECOMMUNITIESSHOULDBEABLETOHOLDTHEIROWNAGAINSTOTHERFINANCIALSERVICESPROVIDERSROLEOFCOMMUNITYBANKSINTHEFEDERA
30、LRESERVESMISSIONLETMETURNNOWTOTHESECONDPARTOFMYPRESENTATIONTHEROLEOFCOMMUNITYBANKSINTHEFEDERALRESERVESMISSIONWHENCONGRESSDESIGNEDTHEFEDERALRESERVEASADECENTRALIZEDSYSTEM,THEINTENTIONWASTOGIVEITABROADPERSPECTIVEONECONOMICACTIVITYINALLPARTSOFTHENATIONTODAY,ASINTHEPAST,THISREGIONALPERSPECTIVEHELPSTHEFED
31、ERALRESERVECARRYOUTITSMISSIONBECAUSECOMMUNITYBANKSPLAYKEYROLESINSOMEREGIONSANDINSOMESECTORSOFTHEECONOMY,THEYAREAPARTOFTHEFEDERALRESERVESBROADPERSPECTIVETHEIRACTIVITIESPROVIDEINSIGHTREGARDINGTHESTATEOFTHEECONOMYANDTHISINSIGHTCONTRIBUTESTOTHEFEDERALRESERVESOVERARCHINGMISSIONOFMAINTAININGMACROECONOMICA
32、NDFINANCIALSTABILITYTOBEMORECONCRETE,IWOULDSUGGESTTHATCOMMUNITYBANKSPLAYAROLEINEACHOFTHEFEDERALRESERVESTHREEMISSIONSMONETARYPOLICY,BANKINGSUPERVISIONANDREGULATION,ANDTHEPAYMENTSSYSTEMTHEIMPORTANCEOFCOMMUNITYBANKSVARIESACROSSTHESEMISSIONS,ASDOESTHENATUREOFCOMMUNITYBANKSINTERACTIONWITHTHEFEDERALRESERV
33、EINTHESEAREASBUTINALLCASES,COMMUNITYBANKSPLAYAROLEMONETARYPOLICYINTHEAREAOFMONETARYPOLICY,COMMUNITYBANKSLIKEALLBANKSHELPTRANSMITPOLICYACTIONSTOTHEECONOMYONECHANNELTHROUGHWHICHMONETARYPOLICYWORKSISTHECAPITALMARKETSTIGHTERMONETARYPOLICYRAISESINTERESTRATES,MAKINGITMOREEXPENSIVEFORBUSINESSESTOFINANCENEW
34、SPENDINGBYSELLINGBONDSORISSUINGCOMMERCIALPAPERBUTMONETARYPOLICYALSOCANAFFECTSPENDINGTHROUGHTHEBANKINGSYSTEMWHENTHEFEDERALRESERVEBOOSTSSHORTTERMINTERESTRATESBYRAISINGTHEFEDERALFUNDSRATE,BANKSFINDITHARDERTOATTRACTDEPOSITS,THEIRMAINSOURCEOFFUNDSFORMAKINGLOANSMOREOVER,WHENMARKETINTERESTRATESGOUP,BANKSFI
35、NDITMOREEXPENSIVETOBORROWNONDEPOSITFUNDSONTHECAPITALMARKETS,THEREBYREDUCINGTHEIRINCENTIVETOMAKELOANSBANKSTYPICALLYRESPONDBYTIGHTENINGTHEIRCREDITSTANDARDSORRAISINGTHEIRLOANRATES,CAUSINGMANYBUSINESSESTOSCALEBACKOPERATIONSCOMMUNITYBANKSPOTENTIALLYPLAYASPECIALROLEINTHISPROCESSBECAUSEOFTHEIRIMPORTANCEASA
36、SOURCEOFCREDITTOSMALLBUSINESSESBECAUSESMALLFIRMSHAVELESSDIRECTACCESSTHANLARGEFIRMSTOCAPITALMARKETS,THEYAREMORELIKELYTOCUTSPENDINGWHENBANKLOANSBECOMEMOREDIFFICULTOREXPENSIVETOOBTAINCONSISTENTWITHTHISVIEW,SOMEEMPIRICALEVIDENCESUGGESTSTHATSMALLBUSINESSESBEARTHEBRUNTOFMONETARYPOLICY,ACCOUNTINGFORADISPRO
37、PORTIONATESHAREOFTHEDECLINEINECONOMICACTIVITYFOLLOWINGATIGHTENINGOFPOLICYASECONDREASONCOMMUNITYBANKSPLAYASPECIALROLEINTHETRANSMISSIONOFMONETARYPOLICYISTHATCHANGESINMONETARYPOLICYTENDTOHAVEAMUCHBIGGERIMPACTONTHEIRLENDINGTHANONTHELENDINGOFLARGEBANKSTHISTENDENCYHASBEENCONFIRMEDBYCAREFULEMPIRICALSTUDIES
38、OFTHERESPONSEOFBANKLENDINGTOCHANGESINMONETARYPOLICYTHEMOSTLIKELYEXPLANATIONISTHATSMALLBANKSAREMOREDEPENDENTTHANLARGEBANKSONDEPOSITSASTHEIRSOURCEOFFUNDSFORMAKINGLOANSWHENTIGHTERMONETARYPOLICYRAISESMARKETRATESANDMAKESITHARDERFORBANKSTOATTRACTDEPOSITS,SMALLBANKSCANNOTSOEASILYMAKEUPTHESHORTFALLOFFUNDSBY
39、BORROWINGONTHECAPITALMARKETSEITHERTHEYCANNOTBORROWATALL,ORTHEYMUSTBORROWATHIGHRATESBECAUSEINVESTORSLACKINFORMATIONABOUTSMALLBANKSFINANCIALCONDITIONITISIMPORTANTTOEMPHASIZETHATCOMMUNITYBANKSWOULDPLAYASPECIALROLEINTHETRANSMISSIONPROCESSEVENIFTHEYFOUNDNEWWAYSTOACCESSNONDEPOSITFUNDSMOREOVER,ISUPPORTCOMM
40、UNITYBANKSEFFORTSTOADDRESSTHEIRFUNDINGPROBLEMS,ASSUMINGTHEYREMAINMINDFULOFPOSSIBLE“MORALHAZARD”ISSUESANDTHEYMANAGEANYRELATEDINCREASEINRISKBUTEVENIFCOMMUNITYBANKSDOBECOMELESSDEPENDENTONDEPOSITS,MONETARYPOLICYWILLSTILLINFLUENCETHEIRLENDINGTOSMALLBUSINESSESTHROUGHCHANGESINTHECOSTOFFUNDSANDTHESUPPLYOFDE
41、POSITSASARESULT,ITISESSENTIALFORTHEFEDERALRESERVETOCONTINUEMONITORINGTHEHEALTHOFCOMMUNITYBANKSANDTHEIRLENDINGANDFUNDINGPRACTICESBANKINGSUPERVISIONANDREGULATIONINTHEAREAOFBANKINGSUPERVISIONANDREGULATION,THEFEDERALRESERVEISCHARGEDBYCONGRESSWITHTHERESPONSIBILITYOFSUPERVISINGSTATECHARTEREDBANKSTHATHAVEJ
42、OINEDTHEFEDERALRESERVESYSTEMANDBANKHOLDINGCOMPANIESTHATCONTROLBANKS,REGARDLESSOFCHARTERTYPENATIONWIDE,THEFEDERALRESERVEDIRECTLYSUPERVISESABOUT800COMMUNITYBANKSTHATARESTATEMEMBERSTHISISARELATIVELYMODESTPROPORTIONOFTHENATIONSCOMMUNITYBANKSABOUT11PERCENT,ANDTHESEBANKSCONTROLARELATIVELYMODESTPROPORTIONO
43、FCOMMUNITYBANKASSETSABOUT14PERCENTINCONTRAST,THEFEDERALRESERVESROLEINSUPERVISINGBANKHOLDINGCOMPANIESTHATCONTROLCOMMUNITYBANKSISFARMOREEXTENSIVECURRENTLY,FOREXAMPLE,THEFEDERALRESERVEBANKOFKANSASCITYSUPERVISESAPPROXIMATELY870BANKHOLDINGCOMPANIESCONTROLLINGALMOST1,000COMMUNITYBANKSTHEPURPOSEOFTHEFEDERA
44、LRESERVESSUPERVISIONOFBANKSISTOENSURESAFETYANDSOUNDNESSOFTHENATIONSBANKINGANDFINANCIALSYSTEM,STABILITYINTHEFINANCIALMARKETS,ANDFAIRANDEQUITABLETREATMENTOFCONSUMERSINTHEIRFINANCIALTRANSACTIONSWITHRESPECTTOCOMMUNITYBANKS,EFFECTIVESUPERVISIONHELPSENSUREARELIABLESOURCEOFCREDITANDOTHERFINANCIALSERVICESTO
45、THEREGIONSANDSECTORSOFTHEECONOMYTHATRELYHEAVILYONCOMMUNITYBANKSTHISISIMPORTANTBECAUSETHEFAILUREOFSUCHBANKSCANHAVEAHIGHLYADVERSEIMPACTONECONOMICACTIVITYINRURALAREASORSMALLERTOWNSAND,TOALESSEREXTENT,INURBANAREASDEPENDENTONTHEMFORCREDITANDOTHERFINANCIALSERVICESINADDITION,RELIABLESUPERVISIONOFCOMMUNITYB
46、ANKSENHANCESPUBLICCONFIDENCEINTHESAFETYANDSOUNDNESSOFTHEENTIREBANKINGSYSTEMBUTALONGWITHTHISMISSION,SUPERVISIONANDREGULATIONALSOPROVIDESA“WINDOW”INTOTHEFUNCTIONINGOFTHEBANKINGSECTORINCLUDINGCOMMUNITYBANKSDIRECTSUPERVISIONANDONSITEINSPECTIONSPROVIDEINSIGHTNOTONLYONEMERGINGTRENDSINCOMMUNITYBANKPERFORMA
47、NCEOFTENLONGBEFORETHEYAPPEARINAGGREGATESTATISTICSBUTALSOONCHALLENGESFACINGCOMMUNITYBANKERS,SUCHASDECLININGMARKETS,SHIFTINGDEMOGRAPHICS,TECHNOLOGICALCHANGE,ANDCOMPETITIVEPRESSURESFROMOTHERFINANCIALINSTITUTIONSMOREOVER,BYUNDERSTANDINGTHEHEALTHANDVIABILITYOFCOMMUNITYBANKSANDTHEIRPROSPECTSFORTHEFUTURE,T
48、HEFEDERALRESERVEGAINSINSIGHTREGARDINGKEYSECTORSOFTHEECONOMYTHATAREFINANCEDBYCOMMUNITYBANKSDISCUSSIONSWITHBANKERSANDTHEREVIEWOFSPECIFICLOANSTOBUSINESSESANDCONSUMERSPROVIDEVALUABLEINFORMATIONABOUTCHANGINGBUSINESSANDECONOMICCONDITIONSPAYMENTSSYSTEMINADDITIONTOTHEIRIMPORTANCEINTHEFEDERALRESERVESMONETARY
49、POLICYANDBANKINGSUPERVISIONFUNCTIONS,COMMUNITYBANKSALSOPLAYACRITICALROLEINTHEUSPAYMENTSSYSTEMTHEYARETHEPRINCIPALMEANSTHROUGHWHICHMANYCONSUMERSANDBUSINESSESACCESSTHEPAYMENTSSYSTEMAND,INSOMEPARTSOFTHECOUNTRY,THEONLYFINANCIALINSTITUTIONPROVIDINGDIRECTACCESSTHREEOVERRIDINGPUBLICPOLICYOBJECTIVESGUIDETHEFEDERALRESERVESINVOLVEMENTINTHEPAYMENTSSYSTEMACCESSIBILITY,EFFICIENCY,ANDSAFETYFORCOMMUNITYBANKSANDTHEIRCUSTOMERS,ACCESSISAPARTICULARLYIMPORTANTISSUECOMMUNITYBANKSHOLD21PERCENTOFTHENATIONSDEPOSITACCOUNTSTHESEACCOUNTSAREACCESSEDTHROUGHCHECKS,ATMMACHINESOWNEDOROPERATEDBYCOMMUNIT
