##roller of the currency ( 2006 ), “ federal banking agencies issue final guidance on concentrations in commercial real estate lending ”, press release, december 6, http : / / federalreserve. gov / newsevents / press / bcreg / 20061206a. htm. bis central bankers ’ speeches hosted by state bank commissioners in 30 states. the presentation of these findings will be followed by a panel discussion by a select group of community banking experts. i hope i have succeeded in whetting your appetite for the sessions that lie ahead, and i encourage you to make the most of this unique opportunity to interact with bankers, regulators, and researchers who share a common interest in the future of community banking. bis central bankers ’ speeches

jerome h powell : community banks in the united states introductory remarks by mr jerome h powell, member of the board of governors of the federal reserve system, at the community banking research and policy conference, co - sponsored by the federal reserve system and conference of state bank supervisors, st. louis, missouri, 23 september 2014. * * * it is a pleasure for me to join jim bullard and john ryan in welcoming all of you to the second annual community banking research and policy conference, co - sponsored by the federal reserve system and conference of state bank supervisors. i had the privilege of addressing the inaugural community banking conference held here last year, and as chairman of the federal reserve board ’ s subcommittee on smaller regional and community banking, i am delighted to return to this venue to participate in this year ’ s event. 1 as all of you surely know, community banks play a vital role in america ’ s financial system, providing essential services to households, small businesses, and small farms in communities throughout the country. community banks differ from their larger cousins, not just in size, but in the fundamental focus of their business. community bankers ’ primary objective is to serve the members of their local communities, who are not only their customers but also their neighbors and friends. they have strong links to the people and businesses that reside in their communities, as well as direct knowledge of local economic conditions. these close ties give community bankers a clear advantage in understanding local needs and tailoring their products and services to meet those needs. i will confess that i have never worked at a community bank ; however, i have been a community bank customer, and in that role i have had personal experience interacting with bankers whose mission is to provide high quality of service to every customer who walks in the door. despite the advantages that i just mentioned, life is not always easy for community bankers. the number of community banks in the united states has declined sharply over the past three decades, due to a combination of failures and acquisitions. 2 and many remaining community banks have struggled to survive, especially during the last five or six years. although improving overall economic conditions have begun to provide some relief to these struggling banks, they continue to face significant challenges. the burden of regulatory compliance can be particularly daunting for small banks. and competition, from large banks and credit unions as well as other nonbank financial service providers, is always a concern. my colleagues on the federal reserve board and i are committed to making sure that we understand the challenges