and the implementation of the automated clearinghouse, or ach system, in partnership with the private sector. this operational role has allowed the federal reserve to support the goal of a safe and efficient payment system throughout its history. it has also contributed to widespread public confidence in the nation ’ s payment infrastructure. at times, the federal reserve has taken extraordinary steps to ensure the payment system can function reliably. after planes were grounded on september 11, 2001, in the aftermath of the terrorist attacks in new york and washington, d. c., the federal reserve arranged alternative transportation for millions of checks that normally would have moved across the country by plane. the federal reserve also started giving immediate credit for all checks that it received. this provided a key source of liquidity for the payment system and temporarily caused the daily float held by the federal reserve to increase over 6, 000 percent. 7 after september medley, highways of commerce, 105, https : / / www. kansascityfed. org / ~ / media / files / publicat / highwasyofcommer / highwaysofcommerce. pdf? la = en. - 511, the federal reserve also took steps to improve the future efficiency of the nation ’ s check collection system by working with congress on the passage of the check 21 act in 2002. a safe and efficient payment system also needs to be accessible, because payment services are most valuable when you can pay anyone regardless of where balances are held. the ultimate success of any effort to modernize the u. s. payment system depends on adoption across the entire banking industry. therefore, in considering the federal reserve ’ s provision of payment services, congress took steps to try to ensure access to services across the country. as a result, congress specifically tasked the federal reserve with taking into account an adequate level of services nationwide when providing and setting fees for payment services. 8 the united states has a highly complex banking system with more than 10, 000 depository institutions spread over wide areas with differing payment needs. 9 over 4, 800 of those are community banks. 10 in many areas, particularly rural areas, community banks may be the primary providers of banking services for individuals and small businesses. community banks are, therefore, essential in ensuring access to safe and efficient payment services in towns, cities, and rural communities nationwide so that payments can move across the country regardless of geography — from here in the south, to the midwest, and coast to coast. the monetary control act of 1980

means strengthening the regulations to ensure that a wide range of lmi banking needs are being met. it also entails promoting financial inclusion by, among other things, providing credit for activities in areas with unmet needs outside of assessment areas, such as indian country. additionally, we aim to create incentives for investment in minority depository institutions and community development financial institutions, many of whom are icba members. we know that banking has evolved over the past 25 years, so we also sought to update standards in light of changes to banking over time, including mobile and internet banking. lastly, we wanted to continue to promote community engagement to inform the examination process. our second major goal for the anpr was to provide greater certainty, tailor regulations, and minimize burden. the anpr seeks feedback on several approaches designed to make the rules clearer, more transparent, and less subjective. for example, the proposed metrics for the retail test and the community development test would provide more clarity and transparency on how bank ratings are determined. in talking with community banks, federal reserve staff and i also heard about the need for clearer standards and greater limitations on the size of assessment 1 / 2 bis central bankers'speeches areas — especially for small banks operating just in a portion of a large county or only making a few loans in a part of a county. the anpr offers ideas to provide greater clarity in response to these concerns. importantly, the anpr proposes to tailor cra to bank size and business model. in discussing cra reform with bankers and community organizations, it has been clear that there is a need for a tailored approach for small banks and better outcomes for rural communities. i am encouraged that the anpr offers ideas that advance these objectives. so let me say a bit more about the proposals in the anpr that are tailored to small banks. small retail banks could continue to have their retail lending activities evaluated under the current framework, or they could elect to be evaluated under the proposed retail lending metric. small banks that opt for the retail lending metric can also elect to have other activities considered. additionally, the anpr minimizes data collection and reporting burden by relying on existing data as much as possible, as well as exempting small banks from deposit and certain other data collection requirements. we also heard from stakeholders like icba that rural areas, and banks in rural areas, have particular needs. therefore, the anpr proposes providing incentives for banks in rural areas to participate in beneficial civic and other nonprofit activities ( e.