Welcoming remarks by Chair Powell at the Community Bank Conference

Good morning and welcome to the Federal Reserve Board. I am sorry that I’m traveling and could not be with you today. Thank you to Vice Chair for Supervision Miki Bowman for hosting this conference. Thank you also to all the Board staff that made this event possible.

Community banks play a vital role in the U.S. financial system because they have strong links to the people and businesses they serve, and direct knowledge of local economic conditions. These close ties allow community bankers to better understand their customers, and the ensuing products and services for those they serve. I saw this clearly when I led the Board’s community and regional bank subcommittee as a governor. I have also seen the critical role of community banks in the communities where I have lived, including as a community-bank customer.

Today’s event is a helpful opportunity for Fed leaders to hear from community bankers and learn more about the issue you face. We are committed to understanding these issues. And we have long been committed to tailoring our supervisory practices as appropriate for community banks to reduce unnecessary burden, while still ensuring that community banks continue to operate in a safe and sound manner.

Thank you for being here today to share your knowledge and experience. And thank you for being such a vital part of the communities you serve.