other boroughs. while crime has fallen dramatically over the past two decades, it also remains higher than in the rest of the city. debt is also burdensome for many bronx residents. delinquency rates on household debt are relatively high, suggesting that many people are financially “ distressed. ” all this makes it especially important to maintain the economic momentum that is improving the quality of life in the bronx. community banks have an important role to play in this process. bank lending can help businesses – especially new and small businesses – expand and grow jobs, and help residents invest in improving their homes, neighborhoods and communities. lending to small businesses and entrepreneurs requires deep knowledge of local business conditions and potential borrowers, both of which community banks have a comparative advantage in acquiring. former chairman ben bernanke in a 2012 interview summarized this point quite well. he stated that “ community banks have the capacity to respond with greater agility to lending requests than their national competitors ; they have more detailed knowledge of the needs of their customers and closer ties to the communities they serve. ” 2 given this critical role played by community banks for localities such as the bronx, it is important to ensure that the local banking sector remains vibrant. the financial crisis offers important lessons for community banks in this regard. lessons for community banks from the financial crisis america ’ s banking system began with community banks, and today they continue to play a critical role in the financial system. however, the number of commercial bank charters has declined by 50 percent since 1985, with the recent financial crisis contributing to this decline. a total of 417 banks and thrifts failed between 2006 through 2011. 3 many community banks, though, not only survived but also thrived during the crisis. why? what sets those banks apart from others that failed, or that survived but did not thrive? what were some common the importance of community banking : a conversation with chairman ben bernanke, community banking connections, third quarter 2012. the future of community banks : lessons learned from banks that thrived during the recent financial crisis by r. alton gilbert, andrew p. meyer, and james w. fuchs all of the federal reserve bank of st. louis. bis central bankers ’ speeches characteristics across the successful banks? these characteristics are undoubtedly important and will be an essential element of success in the future. some factors that one might think are important turn out not to be critical in determining performance. for example, asset size was generally not a factor in performing well during, and

many dimensions : its economy has been growing at a brisk pace, its population is on the rise, its housing stock is being rejuvenated and many businesses are thriving, creating strong job and income growth. this is particularly evident in neighborhoods like hunts point and the area around yankee stadium, down to the bronx terminal market and beyond. between 2007 – right before the last recession – and last year, employment grew by 10 percent in new york city, making it one of the best performing areas in the nation. in the bronx, employment grew even faster, rising by more than 14 percent. while job creation in the bronx has been quite broad - based, i would like to highlight two particular industries, each very different in nature, to illustrate the diversity of bronx ’ s economy. both health services and wholesale food distribution have been flourishing here. these sectors, on average, pay relatively well and both have been contributing strongly to jason bram, christopher calabia, tony davis, jacqueline fenton, claire kramer mills, don morgan, james orr, joseph tracy and luis uranga assisted in preparing these remarks. bis central bankers ’ speeches overall job creation and to the borough ’ s economic resurgence. by health services, i don ’ t just mean hospitals and clinics serving the local population. for example, montefiore medical center is a nationally - ranked institution in a variety of specialties as well as a highly regarded teaching hospital. additionally, the albert einstein college of medicine is a graduate medical school and clinical research facility. and, of course, the hunts point food distribution center houses institutions such as the fulton fish market, which moved here from lower manhattan about a decade ago. but, of course, these aren ’ t the only industries driving the bronx economy. just last november i visited onforce solar, an installer of solar heating systems located in the port morris section of the south bronx. there has also been a great deal of retail development over the past decade – most notably, perhaps, the bronx terminal market just south of yankee stadium. a little known fact is that, on average, jobs pay more in the bronx than in any other of the five boroughs, except for manhattan. and my regional economists assure me that it ’ s not just the yankees that bring up the average, although they do make a difference. this, of course, is not to say that all is well in the bronx. its poverty rate and unemployment rate are both roughly twice the national average, and higher than in any of the