2 the study spells out the relative advantages of different types of funds for different kinds of projects — preservation versus development, for example — and details which funds are best for the early, middle, or late stages of a project. turning to support for small businesses, community development staffers across the federal reserve conduct extensive research and analysis of the challenges and opportunities facing small business owners. for example, the 12 federal reserve banks collaborate on the annual small business credit survey, which surveys business owners about their financing needs and experiences to provide timely insights to policymakers, service providers, and lenders. 3 in addition to providing information on small business credit conditions, the federal reserve is trying to advance understanding of the best economic development strategies for supporting small businesses. the kansas city fed has helped lead on these issues through its “ grow your own ” entrepreneurship - based economic development guidebook, and its 2018 growing entrepreneurial communities summit. 4 these are just a few of the ways that federal reserve banks and the board of governors support the efforts of community development organizations. i hope that our work will be useful as you chart a path forward for your second decade of service to utah, and i look forward to continued collaboration between the federal reserve and community development organizations such as ucns. together, we can help support thriving communities across the wasatch front, the state of utah, and across our nation. thank you again for inviting me to speak, and congratulations again for 10 years of building stronger communities in utah. 1234 1 ucns is the parent organization of four separate organizations that, in combination, work to advance access to affordable housing, including homeownership and housing near high - capacity or high - frequency transit ; support economic development and job creation by funding small businesses ; and improve access to important community infrastructure. 2 2. elizabeth mattiuzzi, “ funds for kickstarting affordable housing preservation and production : lessons for new investors, ” community development research briefs ( san francisco : federal reserve bank of san francisco, march 2019 ). return to text 3 see www. fedsmallbusiness. org / for more information. 4 the guidebook is available at www. kansascityfed. org / ~ / media / files / publicat / community / gyo / entrepreneurship - econ - dev - local - communities. pdf. 2 / 2 bis central bankers'speeches

##ntial supervision of individual financial institutions is undertaken. this may occur, for example, if the risk profiles of the institutions in question show a high degree of similarity, making the system especially vulnerable to a particular type of shock. supervision at the micro level, therefore, has to be complemented with a macro analysis of the interlinkages between different segments of the domestic financial sector and its links with the payment system, the rest of the economy and its counterparts abroad. on the other hand, it is also true that the bank ’ s macroprudential analysis may not provide precise information on individual institutions, particularly those that may be on the brink of insolvency. here, the authority, through regular inspections of individual service providers will have a more in - depth knowledge of the health of single intermediaries and market segments, including those which play a peripheral role in the monetary policy transmission process and with which the bank ’ s relationship is, at least on a one - to - one basis, rather distant. in this sense, the authority also contributes to the soundness of the bank ’ s counterparties. it is also the authority which ensures that only sound institutions are licensed to enter the maltese market. furthermore, confidential supervisory information available to the authority could be useful to the bank as an input into its overall analysis of the financial system, enabling it to respond to liquidity and related constraints that could set off negative ripple effects. the potential for synergies between the two institutions prompted them to sign two memoranda of understanding in 2002 to provide for enhanced co - operation, including through the establishment of a standing committee. this cooperation framework has contributed to the general soundness and stability of the financial system. the profitability of our banks, for example, has remained stable with an average return on assets after tax of 0. 8 % in 2003, the same level as that recorded by european banks. furthermore, bank liquidity and capitalization levels have both remained strong. liquid asset holdings as a percentage of short - term liabilities were close to 53 % at the end of 2003, compared to a minimum threshold of 30 %. meanwhile, the banks ’ aggregate capital adequacy ratio, defined as the ratio of own funds to risk - weighted assets, currently stands at 23 %, compared to a minimum of 8 %. in the insurance sector and collective investment schemes steady growth continues to be registered. this positive performance notwithstanding, there remains scope for further improvement in the framework through which the