amounts of new equity capital and, in many cases, to repay government capital. the federal reserve and other bank regulators continue to encourage the banks to build up their capital, ensure that they have adequate liquidity, improve their risk management, and restructure their employee compensation programs to better align risk and reward. despite their stronger financial positions, banks ’ lending to both households and businesses has continued to fall. the decline in large part reflects sluggish loan demand and the fact that many potential borrowers no longer qualify for credit, both results of a weak economy. the high rate of write - downs has also reduced the quantity of loans on banks ’ books. banks have also been conservative in their lending policies, imposing tough lending standards and terms ; this caution reflects bankers ’ concerns about the economic outlook and uncertainty about their own future losses and capital positions. the federal reserve has been working to ensure that our bank supervision does not inadvertently impede sound lending and thus slow the recovery. achieving the appropriate balance between necessary prudence and the need to continue making sound loans to creditworthy borrowers is in the interest of banks, borrowers, and the economy as a whole. toward this end, in cooperation with the other banking regulators, we have issued policy statements to bankers and examiners emphasizing the importance of lending to creditworthy customers, working with troubled borrowers to restructure loans, managing commercial real estate exposures appropriately, and taking a careful but balanced approach to small business lending. 2 we have accompanied our guidance with training programs for both federal reserve and state examiners, and with outreach to bankers throughout the industry. for example, we just completed a training initiative that reached about 1, 000 examiners. we are also conducting a series of meetings across the country with private - and public - sector partners to gather information about the credit needs of small businesses and how those needs can best be met. we have also stepped up our information gathering, so that we can better understand factors that may be inhibiting bank lending. these efforts include a survey by examiners of banks ’ practices in working out loans, the results of which will serve as a baseline against which we will assess the effectiveness of our supervisory guidance. we are also obtaining additional information on small business credit conditions. for example, we assisted the national federation of independent business in developing a survey to assess barriers to credit access by small businesses. 3 and we are using our own senior loan officer opinion survey on bank lending practices to monitor changes in bank lending

congress ’ plan for strengthening financial regulation, the dodd - frank act. i promise to stay focused on moving that process forward as quickly and responsibly as possible and to verify that these reforms are meeting the goal of safeguarding the financial system. i will also continue the work of helping repair the damage done by the financial crisis to the economy. too many americans still can ’ t find a job or are forced to work part - time. the goals set by congress for the federal reserve are clear : maximum employment and stable prices. it is equally clear that the economy continues to operate considerably short of these objectives. i promise to do all that i can, working with my fellow policymakers, to achieve the very important goals congress has assigned to the federal reserve. i take up these challenges aided by the immensely skilled, talented, and dedicated men and women who comprise the federal reserve ’ s staff. our staff constitute one of the fed ’ s greatest strengths and i am proud to serve with individuals who exhibit the highest standards of professionalism and integrity. they work tirelessly, day in and day out, to serve the public interest. their skill, creativity and perseverance enabled the fed to do its part to meet the bis central bankers ’ speeches grave threats our nation faced in the financial crisis and then persevere in a disappointingly slow recovery. and their knowledge, analysis and judgment will be indispensable in fulfilling the mission of the federal reserve in the years ahead. congress has entrusted the federal reserve with great responsibilities. the tools we deploy, to guide the financial system and influence our vast economy, can seem far removed from the lives and concerns of average americans. and yet the decisions we make affect the welfare and shape the future of every american. i promise to never forget the individual lives, experiences and challenges that lie behind the statistics we use to gauge the health of the economy. the unemployment rate represents millions of individuals who are eager to work but struggling to provide for themselves and their families. when we make progress toward our goals, each job that is created lifts this burden for someone who is better equipped to be a good parent, to build a stronger community, and to contribute to a more prosperous nation. let me close by offering my heartfelt thanks for the many messages i have received since my nomination from individuals around the country who have written to wish me well and offer their support. i pledge to do my very best to meet the challenges that lie ahead. thank you all for