used to determine eligibility for federal housing administration guarantees. pursuant to guidance from the board of governors, each of our federal reserve banks houses a group of dedicated community development professionals and cra examiners to help banks meet their cra obligations. we are proud of our work in familiarizing banks with the cra ’ s provisions, introducing banks to potential partners in their communities, and convening conferences to disseminate research and best practices. 3 the cra plays a vital role in the ecosystem supporting economic opportunity in lmi communities in both rural and urban areas. rather than direct funds to specific projects, the cra encourages banks to engage on the priorities identified by local leaders and more broadly serve credit needs of small businesses and residents of these communities. by being inclusive in their lending and investing, banks help their local communities to thrive, which in turn benefits their core business. the recognition of this mutually beneficial relationship between banks and their local communities is one of the core strengths of the cra and the reason our effort to revise the cra regulations must focus on local needs and stakeholder input. what have we learned from stakeholders? for several years, the federal banking regulators have been asking stakeholders for input on strengthening the cra regulations to help banks better meet the credit needs of the local lmi communities they serve and more closely align with changes in the ways financial products and services are delivered. we also have heard calls from banking and community organizations for the use of metrics to provide greater upfront clarity about evaluation standards. we have heard lael brainard, “ community development in baltimore and a few observations on community reinvestment act modernization, ” ( remarks delivered at the federal reserve bank of richmond baltimore community development gathering, baltimore, maryland, april 17, 2018 ), https : / / www. federalreserve. gov / newsevents / speech / brainard20180417a. htm. that branches remain as important as ever to their local communities, even as the growth of mobile and online services has extended the geographic area that banks are serving. 4 the one message we have heard most consistently is that banks and community organizations alike value the activities they undertake under the auspices of the cra and have invested considerable time and effort in the associated processes and reporting. 5 for that reason, stakeholders have asked the regulators to take care as we contemplate changes to the cra. 6 if the past is any guide, major updates to the cra regulations happen

trade and about 60 percent that of china ’ s. asean provides good diversification for investors ’ asian portfolios. last year, foreign direct investments into the asean - 5 totaled nearly us $ 70 billion, roughly three times the inflows into india. 6. let me touch on three aspects of the asean story. first, asean is resilient : it rode the global financial crisis very well. i will assess how asean is now coping with the post - crisis risks of inflation and capital inflows. second, asean is getting more integrated. i will discuss the progress asean is making towards a single market and production base, which will create a more seamless marketplace for businesses. bis central bankers ’ speeches third, asean is opportunity. i will focus on the significant investment opportunities in asean, especially in the area of infrastructure. resilience : managing inflation and capital inflows 7. let me begin by touching on asean ’ s resilience in the face of external shocks. the asian financial crisis of 1998 / 99 was a life - changing experience for many countries in the region. they were badly affected by the crisis and resolved never again to be so vulnerable. macroeconomic policies have become more sound, financial regulation and supervision has tightened, national balance sheets strengthened, structural reforms stepped up, and corporate governance enhanced. 8. the asean countries consequently showed remarkable resilience in the recent crisis. while credit tightened and trade plunged during the height of the crisis, there was no systemic financial fallout, especially in the banking industry. the region rebounded strongly, with the asean - 5 growing by 8 per cent in 2010. this year, growth is expected in the range of 5 to 6 per cent. 9. but strong growth has come with a new set of challenges. asean and the rest of asia are now grappling with rising inflation. consumer prices are forecast to increase by 5. 1 per cent in the asean - 5 this year, compared to 3. 8 percent in 2010. several factors underpin this. 10. first, elevated food prices. in the asean - 5 economies, food accounts for about a third of the consumption basket, much higher than advanced economies. given this high weight of food, food price increases have a strong direct impact on headline inflation. 11. second, strong inflows of capital adding to asset price and domestic demand pressures. low interest rates in the advanced economies have prompted global investors to seek higher returns in emerging economies, especially in asia.