policy instrument and since some developing countries have limited fiscal space, they are at the mercy of resource transfers from the stronger member countries. fourth, the establishment of a regional central bank robs national economies of revenues from seignorage, which could be sizable in fiscal terms. this loss is in addition to the revenue loss from trade liberalization. the caribbean reality let me briefly apply some of these general principles to the caribbean situation. let me address the question whether, based on these principles, we are ready for monetary union of the eu variety. are the preconditions there, and more importantly, are we ready for the type of commitments that may be necessary? first the preconditions : although the level of intra - regional trade has been increasing in recent years. the share in total trade remains relatively small, at an estimated 8 to 10 percent, compared with ( as i said before ) 60 percent in the eu. and this ratio is heavily influenced by oil exports from trinidad and tobago to the rest of the region ; if these are excluded ( and who knows what petro - caribe will imply ), the ratio is more in the region of 3 to 5 percent. this low ratio of regional to total trade reduces the potential benefit from the reduction in transactions costs that could derive from the establishment of a single currency. still in terms of pre - conditions, one area in which we have been making important progress is towards intra - regional capital mobility. integration of the regional capital market is being enhanced through the proliferation of financial conglomerates operating throughout the caricom area. some progress has been made as regards the elimination of capital controls though two countries still maintain restrictions. there is a significant amount of informal collaboration in the area of financial sector regulation while work proceeds on the formulation of a caricom financial services agreement. an important aspect of the intra - regional capital mobility challenge which is receiving attention is the integration of the regional stock markets. the standardization of regulations among the various national stock exchanges, as well as regional connectivity, would go a long way towards creating a larger market for regional government securities and increasing the liquidity of the equity market. obviously, the creation of a single currency would facilitate capital market mobility though we would still have to deal with issues such as the standardization of settlement systems. as indicated above, regional labour mobility is an essential precondition to monetary union since it could be an important factor in cushioning exogenous shocks. initial steps towards the promotion of labour market

welcoming remarks by jerome h. powell chair board of governors of the federal reserve system at the 2022 community banking research conference, sponsored by the federal reserve, the conference of state bank supervisors, and the federal deposit insurance corporation st. louis, missouri ( via pre - recorded video ) september 28, 2022 good morning, and welcome to the 10th annual community banking research conference. i have attended this conference twice before, including the first one back in 2013, and i can attest to the quality of the research and discussions. while i am coming to you virtually today, many of you are gathering in person for the first time in three years. i am sure it will make an excellent event even more enjoyable. the community banking research conference brings together researchers, regulators, policymakers, and community bankers to discuss the unique and important role community banks play in our economy. the conference was launched in the years following the financial crisis, in a collaboration by the federal reserve, the conference of state bank supervisors ( csbs ), and the federal deposit insurance corporation ( fdic ). the conference was developed to deepen our understanding of the community bank business model and to provide a forum to discuss research with academics, policymakers, regulators, and community bankers. the research presented over the years has informed supervisory and regulatory policy debates and continues to challenge our thinking. it has highlighted the vital links between community banks and small businesses, the availability of credit in low - and moderate - income communities, how community banks support their local communities in times of crisis, and the impact of technology. a critical feature of the research sessions is that community bankers join academic moderators to provide feedback from a practitioner ’ s perspective. the challenges facing community banks have changed significantly over the past 10 years. community banks have demonstrated remarkable resilience, and conferences like this have helped regulators and supervisors to better understand those changes. - 2i want to congratulate the federal reserve bank of st. louis for a decade of hosting an important and informative conference. and i want to thank our colleagues at the fed, the fdic, and the conference of state bank supervisors. on a sadder note, i want to recognize the passing of john ryan, who was president of the csbs, this past may. john ’ s impact on the csbs and his contributions to the financial services sector overall were significant, and he is missed by all who knew and worked with him. thanks also to the researchers and all the community banking professionals