of the extensive system of import controls, the partial lifting of wage - price controls and an overhaul of the income tax regime. while reforms were incremental, a number of landmarks stand out. in 1994, for example, a comprehensive package of legislation was enacted as part of a strategy to further develop malta as an international financial centre. the thrust of this initiative was to promote competition by opening up the licensing process and removing administrative controls on lending, while stressing the importance of maintaining adequate capital and managing risk appropriately. at the same time, the malta financial services centre was established as the regulator for financial services other than banking, which remained the responsibility of the central bank of malta. also in 1994, responsibility for monetary policy was moved to the central bank of malta. the introduction of reserve requirements and the bank ’ s engagement in open market operations paved the way for the establishment of a market - driven interest rate structure, which is of paramount importance for the transmission of monetary policy. to promote activity in the money market and bolster its own ability to steer interest rates, the bank initiated weekly auctions to influence the size of the monetary base, while gaining control over the excess liquidity of the banking system. further steps were subsequently taken to create an independent regulatory framework in line with international standards. in 2002 the renamed malta financial services authority took over from the central bank of malta the responsibility for supervising the banks and the stock exchange, becoming the single regulator. at the same time, the bank was given formal independence in the conduct of monetary policy, in the oversight of payment systems and in safeguarding the stability of the financial system. to complement the institutional framework, a financial intelligence analysis unit was established to strengthen the anti - money laundering regime and to combat the financing of terrorism. as part of the authorities ’ efforts to create a reputable financial centre, in late 2002 the imf / world bank were requested to conduct a financial sector assessment programme ( fsap ). the assessment concluded that malta ’ s financial system appeared to be healthy and well supervised, with a comprehensive legal framework and strong adherence to most international standards and codes. at the same time, the report also noted that, mainly because of the predominance of two large banks, the system was highly concentrated and exposed to the country ’ s narrow economic base. malta as an international financial centre eu membership in 2004 proved to be an important catalyst in the further development of the financial services industry. malta now benefits from the greater credibility conferred by

u. s. virgin islands — and is the area the new york fed is responsible for. i spent yesterday and today meeting with district business leaders, community organizers, and elected officials, hearing about their work, their successes, and their challenges. people ’ s experiences are influenced by the macro level, but their local economy plays an equal, and often more important role in shaping their economic opportunity. one aspect of the fed that we don ’ t talk about enough is the work our regional economists and our outreach teams do, trying to understand what ’ s going on at the local level. while the u. s. economy has been growing for the last 10 years, analysis by new york fed economists shows that not everyone is feeling the benefits equally. growth is concentrated in the largest cities like new york and san francisco, and those who benefit the most are those who already have high incomes. 2 a large part of this is because current economic conditions favor highly skilled workers who tend to flock to cities. these big metropolitan areas are successful, but they also suffer from some of the starkest wage inequality in the country. by contrast, upstate new york is less unequal, but the disappearance of manufacturing jobs has held back growth. more equal wage growth is only good news if people have jobs. but many have found themselves in the position of leaving the area in which they grew up to look for work. the albany area has bucked this trend. the mix of colleges and universities specializing in innovative subjects like nanotechnology, and high - tech businesses, alongside its position as a state capital, has created a real economic success story. i know there are a lot of students in the room, and choosing suny was a wise move. investing in an education that equips you for the future will pay off over the long term. the tale of many economies so what can the fed do about this complex picture — the tale of many economies i ’ ve talked about today? 2 / 3 bis central bankers'speeches monetary policy is an important tool, but it alone cannot address all the economic issues that we face. the policies we enact at the fomc are vitally important for sustaining growth at the national level, but they can ’ t determine everything that happens at the local level. this is where our community development work comes in. through our research and outreach, we put data and analysis into the hands of community leaders to give them tools to strengthen their local economies. we have programs that use