michelle w bowman : opening remarks - 2024 new york fed regional and community banking conference opening remarks ( via prerecorded video ) by ms michelle w bowman, member of the board of governors of the federal reserve system, at the2024 new york fed regional and community banking conference, new york city, 18 april 2024. * * * good morning, it is really a pleasure to join you by video. i would like to thank supervision at the new york fed for inviting me to join you at this year's regional and community banking conference. these forums enable us to continue our engagement with bankers in the industry to address a variety of issues and challenges that exist in the current banking environment. some of the topics that will be covered today include contingency funding, operational readiness, market uncertainties, and banking innovations. i appreciate that you have joined us to discuss these and several other topics on our agenda. before we get started, i would like to highlight a few areas of concern and identify some changed supervisory expectations that may provide a useful backdrop for the discussions. the banking landscape and risks today over the past few years, we have experienced a number of challenges around the world and in the u. s. that have reverberated throughout the economy and have required banks to confront and mitigate the associated risks - including the pandemic, a sharp rise in inflation with an associated rapid rise in interest rates, cre market uncertainties due to changing work and business preferences, increased third - party fintech engagement in the banking industry, and the 2023 bank failures. today, we find ourselves at an inflection point in banking and financial services. some traditional riskslike liquidity risk and interest rate risk - have become a higher priority concern for banks and regulators, while other risks - like third - party risk and cybersecurity risk - continue to evolve and pose new challenges. bankers and regulators alike must consider how our reactions to these issues will impact the future of the banking system, and how safety and soundness, consumer protection, u. s. financial stability, and the ongoing and future role of banks within the u. s. financial system will be affected. banks must ensure their risk - management frameworks appropriately identify, measure, monitor, and control for both existing and emerging risks. they must continue to innovate responsibly and ensure their risk - management frameworks account for novel product offerings both prior to implementation and as the service and customer

by the adequacy standard. ladies and gentlemen, esteemed colleagues until recently, hardly anyone could have imagined that the world would face the consequences of the coronavirus pandemic, the energy crisis and such heightened geopolitical tensions at almost the same time. at present, there are many great unknowns – the duration of the ukraine conflict and its possible long ‐ term consequences for global trade, as well as the prices and availability of energy, industrial raw materials and food. uncertainty also refers to the complexity of the functioning of global markets in the conditions of geopolitical tensions and global value chain disruptions, speed of normalisation of monetary policies of leading central banks and the effects on global financial conditions, etc. for the time being, we judge the risks to the projection of global and domestic growth to be tilted to the downside, and those to inflation – to the upside. as the economic policy makers, we are faced with multiple challenges. you may, however, rest assured that the government and the nbs will pursue a consistent and responsible economic policy and do everything to make sure our economy is strengthened further, just as we did after the pandemic broke out. in this way, we will increase our economy ’ s resilience further and stand ready to respond to all challenges coming from the international environment. going forward, we will continue to carefully monitor and evaluate factors from the domestic and international environment, which will determine our future decisions and steps. depending on geopolitical developments and the movement in key inflation factors from the domestic and international environment, the nbs will estimate whether there is a need to tighten monetary conditions further or whether the effects of past tightening ensure a sustainable return of inflation within the target tolerance band over the projection horizon. delivering price and financial stability in the medium term remains the nbs ’ s monetary policy priority, while supporting further economic growth and development, a further rise in employment and a favourable investment environment. i now give the floor to my colleagues from the economic research and statistics department to present our latest projections in more detail.