approaches to them are broadly similar across jurisdictions. many of the policy approaches discussed have level playing field implications for the structure of international banking and financial activity. we need therefore to ensure that the policies adopted to meet these challenges are consistent and coordinated, do not promote arbitrage that undermines their effectiveness, and do not impose unnecessary constraints that lead to fragmentation of the global financial system. 5. strengthening policy implementation the fsb have been successful in formulating a common agenda that has gained widespread political endorsement. but that is not enough. effective, timely and consistent implementation of agreed policies and standards at national level is essential : first, to resolve collective action and coordination problems ; second, to prevent harmful arbitrage, spillovers and regulatory competition ; and third, to preserve the benefits of a level playing field across the global financial system. it is ultimately up to the national supervisors and regulators to implement the measures they agreed upon within the fsb. responsibility for the surveillance on the actual implementation belongs to the imf. however, one should also underline that all 24 member authorities have committed in the fsb charter to implement international financial standards, and to undergo periodic peer reviews of their adherence. these peer reviews will be of two kinds – country on country reviews, and thematic reviews which examine implementation of agreed policies in a given area across the membership. we will begin conducting peer reviews in january, starting with a review of the implementation of the fsb ’ s principles for compensation that i spoke about earlier. more generally, to further bolster international consistency in rulemaking, our members will participate in an information network to monitor the national implementation of all new measures agreed by the fsb and g20 to strengthen global financial stability. that network will be drawn on in future thematic reviews. the fsb aims to lead by example to strengthen observance of international financial standards across the globe. independent, published, peer reviews of implementation of standards within member jurisdictions will encourage a “ race to the top ” in terms of adherence. they will also reinforce the credibility of the fsb. 6. concluding remarks international cooperation has limited the economic impact of the crisis, avoiding the worst scenarios. still, difficult challenges lie ahead of us : how to recover a balanced, sustainable growth path ; how to build a new financial regulatory framework that reflects the lessons drawn from the crisis. the fsb has been created to improve the design and implementation of financial policies across the globe. the current framework has been shown to be seriously wanting and has

institutions without any loss of resiliency for the financial system. by these steps, i believe the federal reserve is helping community banks remain competitive and play the central role they have long played as vital infrastructure for rural communities. the future of community banks in these communities is one reason that i ’ m optimistic about the economic prospects of small towns in the west, which continue to grow even as the region and the nation overall becomes more urban. that ’ s a good thing, because small towns, and especially their values, have long helped define the west, and i hope will continue to do so. see board of governors of the federal reserve system, “ federal reserve board invites public comment on framework that would more closely match regulations for large banking organizations with their risk profiles, ” news release, october 31, 2018. banks as vital infrastructure for rural communities of the west randall k. quarles vice chairman for supervision board of governors of the federal reserve system at stanford institute for economic policy research december 5, 2018 u. s. census bureau