about the basel ii proposal and proposed basel i amendments. for that reason, we intend to have overlapping comment periods for the nprs of both proposed basel ii and the proposed basel i amendments, so that banks and others can review and comment on both nprs at approximately the same time. in particular, bankers from potential optin institutions and those not planning to move to basel ii can evaluate the potential impact of basel ii in light of the proposed basel i amendments. in fact, we want all interested parties to compare, contrast, and comment on the two proposals in overlapping timeframes. at this point, we are still reviewing the comments received on the anpr for amendments to basel i. the comment period ended in mid - january. the agencies are developing their proposals for basel i amendments, based on comments received, and hope to have a basel i npr by summer. finally, i would like to underscore that the u. s. agencies welcome any and all comments on these documents. accordingly, our proposals could change on the basis of comments we receive or new information we gather. we know that this can be frustrating to some. still given the breadth and depth of these proposals, it is critical that we consider all viewpoints. to date, comments from bankers - - at all sizes of institutions - - have been quite helpful. we request that you continue providing feedback on all the regulatory capital proposals we are contemplating. conclusion i hope you found my remarks about recent regulatory initiatives informative. naturally, bankers may be somewhat concerned about the impact these initiatives - - even proposed guidance - - could have on their business. we hear your concerns about " piling on, " but i think it is helpful to remember that our job as regulators is to ensure that the united states has a safe and sound banking system. in other words, we are in the business of monitoring " downside risk " to the financial system, so we must act appropriately when we see possibly excessive risk - taking or inappropriate risk management, controls, or capital. while most u. s. banks today operate in a safe and sound manner, we must always be vigilant of future problems. i hope it is clear that we are sensitive to the regulatory burden that bankers face ; that is one reason why we often issue guidance first as proposals, requesting comments. indeed, the federal reserve is quite responsive to regulatory burden, as evidenced by the recent senate testimony of governor kohn on the subject. overall, we believe that banks

janet l yellen : welcoming remarks speech by ms janet l yellen, chair of the board of governors of the federal reserve system, at the fifth annual community banking research and policy conference " community banking in the 21st century ", cosponsored by the federal reserve system and conference of state bank supervisors, federal reserve bank of st. louis, st. louis, missouri, 4 october 2017. * * * i am very glad to welcome everyone here to this conference sponsored by the federal reserve system and the conference of state bank supervisors. since the first of these gatherings five years ago, this research and policy conference has established itself as an important event where industry leaders, academics, and supervisors discuss the latest research and exchange ideas about promoting a healthy and growing community banking industry. all of us share an interest in seeing that community banks continue their vital role in their customers ’ lives and in a strong and stable u. s. financial system. the fed has been working hard to ensure that its regulation and supervision of banks are tailored appropriately to the size, complexity, and role different institutions play in the financial system. for community banks, which by and large avoided the risky business practices that contributed to the financial crisis, we have been focused on making sure that much - needed improvements to regulation and supervision since the crisis are appropriate and not unduly burdensome. one way we are doing this is through the regulatory review required by the economic growth and regulatory paperwork reduction act, known as egrpra. the first step we took, pursuant to egrpra, was to listen to industry and others with a stake in how community banks are supervised, which was accomplished through soliciting written comments and by holding six outreach meetings in 2014 and 2015. our egrpra report, issued in march, was focused on community banks, and it noted steps that had already taken place, for example, to simplify call report requirements and expand the number of firms eligible for less frequent examinations. since that report, the board of governors, along with the federal deposit insurance corporation and the office of the comptroller of the currency, has proposed a rule expanding the number of commercial real estate transactions that will no longer require an appraisal, allowing for a less detailed evaluation. and just last week, the fed, along with other regulators, took a significant step to reduce the regulatory burden on community banks and other smaller and less complex institutions by proposing to simplify several requirements in the regulatory capital rule.