banks. in this same 20 - year period, the number of big bank offices increased by about 42 percent, and the number of offices per big bank more than tripled, from just under 17 to nearly 55. the net effect was a decline of more than 25 percent in the share of banking statistics in this paragraph and the next are based on a definition of the term " community bank " that includes independent commercial banks and thrifts with assets less than $ 1 billion and banks and thrifts that are subsidiaries of holding companies with total banking assets less than $ 1 billion, all in 2008 dollars. the term " big bank " is defined to include all other commercial banks and thrifts. offices operated by community banks. the shares of deposits, banking assets, and small business loans held by community banks have declined substantially as well. these declines can be explained by a number of factors, including legal developments, technological advances, and changes in the business strategies of larger banks and nonbank financial service providers. for example, deregulation has allowed banks to expand their geographic reach, facilitating the formation of a number of large, geographically diversified banking organizations. these large banking organizations can now be found in many local markets, competing for business with the community banks that call those markets home. here in north carolina, the number of large banks with a branch presence in the state has more than doubled over the past twenty years, from 18 to 39. at the same time, technological advances have made information about households and small businesses more readily available, allowing some ( typically large ) institutions to substitute credit scoring for more costly traditional techniques in the underwriting of some types of consumer and small business loans. this development has allowed larger banks to compete more effectively with community banks in providing these types of loans. another salient change in the competitive environment is that non - bank financial service providers have become increasingly important participants in the financial services sector, capturing a large and growing share of the retail financial services business. for example, while the number of credit unions has declined by 42 percent since 1989, credit union deposits have more than quadrupled, and credit unions have increased their share of national deposits from 4. 7 percent to 8. 5 percent. in addition, some credit unions have shifted from the traditional membership based on a common interest to membership that encompasses anyone who lives or works within one or more local banking markets. in the last few years, some credit unions have also moved beyond their traditional focus on consumer services to

, and i think we and they have been well served by a culture that emphasizes objective, expert analysis ; professionalism ; dedication ; and independence from political influence. whatever the fed may have achieved in recent years reflects the efforts of many people who are committed, individually and collectively, to pursuing the public interest. although the fed undoubtedly will face some difficult challenges in the years ahead, our people and our values make me confident that our institution will meet those challenges successfully. references adrian, tobias, daniel covitz, and nellie liang ( 2013 ). “ financial stability monitoring, ” finance and economics discussion series 2013 – 21. washington : board of governors of the federal reserve system, october. bis central bankers ’ speeches bagehot, walter ( [ 1873 ] 1897 ). lombard street : a description of the money market. new york : charles scribner ’ s sons. bernanke, ben s. ( 2013 ). “ the crisis as a classic financial panic, ” speech delivered at the fourteenth jacques polak annual research conference sponsored by the international monetary fund, washington, november 8. board of governors of the federal reserve system ( 2007a ). “ fomc announces it will increase the frequency and expand the content of economic projections released to the public, ” press release, november 14. — — — ( 2007b ). “ minutes of federal open market committee, october 30 – 31, 2007, ” press release, november 20. — — — ( 2012a ). “ federal reserve issues fomc statement, ” press release, december 12. — — — ( 2012b ). “ federal reserve issues fomc statement of longer - run goals and policy strategy, ” press release, january 25. — — — ( 2013 ). “ federal reserve issues fomc statement, ” press release, december 18. chen, han, vasco curdia, and andrea ferrero ( 2011 ). “ the macroeconomic effects of large - scale asset purchase programs, ” federal reserve bank of new york staff reports 527. new york : federal reserve bank of new york, december. chung, hess, jean - philippe laforte, david reifschneider, and john c. williams ( 2012 ). “ have we underestimated the likelihood and severity of zero lower bound events? “ journal of money, credit and banking, vol. 44 ( february supplement ), pp. 47 – 82. congressional budget office ( 2013 ). estimated impact