the banking industry, in order to deal with mega banks at levels which minimize the risk of becoming too big to fail. this could reduce the profitability and scale economies of banks, so the benefits and costs of these approaches require analysis and careful study. another option is to increase capital requirements progressively when companies get too large. there would be a need for a clear definition of “ too big ”. should this be defined in terms of market share or the limit on the ability to be bailed out? developing wider norms for cross - border supervision the status of cross - border supervision needs to be fine - tuned. to what extent do regulators share responsibility for cross - border supervision of financial entities in situations where bailout funds come from the national treasury of particular countries ; and who has responsibilities for overseas branches? splitting responsibilities for providing liquidity is one aspect of the problem, since liquidity is intended to be temporary and will be repaid, but bailouts tend to be permanent and one - way. this introduces the issue of the extent to which the manner in which subsidiary legislation is written should take precedence over the obligation for ensuring shared financial stability not only in the country of headquarters but in the country where branches are located. it might appear that some international protocol may be required to clarify the rights and obligations of the parties. a single regulator? complexity versus collaboration the role of a single regulator and the separation of regulation of the banking system from the central banks monetary role has always been a point of difference among central banks. it would be useful to review the stability of the financial systems in various countries to evaluate which system has had fewer regulatory problems? ( those where the central bank is regulator and those where it is not. ) there is evidence that some cases of separation did not work out very well. is there likely to be a trend back to the status quo before separation? it is sometimes argued that each area of regulation is becoming increasingly specialized and a general knowledge is no longer what is required. is it reasonable for a single regulator to have the depth required in each field? yet there is undoubtedly need for regulatory collaboration given the increasing inter - relatedness of financial transactions. how is this best achieved? it may be possible to have regulatory collaboration and in depth expertise in specialist areas with out having a single regulator. rules of collaboration would need to be worked out to make this work. international oversight : the scope a very important response of the g20 was the establishment of the financial stability board, an institution with wider

/ 3 bis central bankers'speeches visiting with and speaking to farmers and community bankers in deming, new mexico. an important part of my job is to hear directly from leaders like you and others across this country to better understand current challenges facing your communities, your companies, and your industry. my goal is to bring back the knowledge i gain from these discussions to inform and improve our work to support both the financial sector engaged in agricultural lending and our mission as the central bank of the united states. i hope that conferences like this will help generate a richer discussion about the challenges and unique advantages in rural america so we can develop more creative, effective and direct policy responses. a deeper debate that, for example, distinguishes between low - density and higherdensity rural areas, between rural communities that are relatively isolated and those that are connected and close to thriving cities, will help us develop more durable solutions. before i close, i want to thank you again, as well as the many people at the federal reserve bank of kansas city and from the federal reserve board who helped organize this year ’ s conference. thanks to all of you for your work to ensure continued success for american agriculture. 1 u. s. census bureau, america counts : stories behind the numbers, “ what is rural america? ” august 9, 2017. return to text 2 federal communications commission ( fcc ), 2018 broadband deployment report ( washington : fcc, february 2, 2018 ). return to text 3 megan lavalley, out of the loop ( pdf ) ( alexandria, va : center for public education, january 2018 ). return to text 4 u. s. census bureau, “ new census data show differences between urban and rural populations, ” news release, december 8, 2016. return to text 5 board of governors of the federal reserve system, monetary policy report ( pdf ) ( washington : board of governors, february 22, 2019 ), 10 – 12. return to text 6 board of governors, monetary policy report, 10 – 12. return to text 7 tim wojan and timothy parker, innovation in the rural nonfarm economy : its effect on job and earnings growth, 2010 – 14 ( pdf ) ( washington : usda, september 2017 ). return to text 3 / 3 bis central bankers'speeches