– 15 ) ( pdf ) ”, exposure draft : proposed accounting standards update ( norwalk, ct : december 20 ), http : / / www. fasb. org / cs / blobserver? blobkey = id & blobnocache = true & blobwhere = 1175825477164 & blobheader = application % 2fpdf & blobheadername2 = content - length & blobheadername1 = contentdisposition & blobheadervalue2 = 1381874 & blobheadervalue1 = filename % 3dproposed _ asu % 25e2 % 2580 % 25 94financial _ instruments % 25e2 % 2580 % 2594credit _ losses _ % 2528 _ subtopic _ 82515 % 2529. pdf & blobcol = urldata & blobtable = mungoblobs. board of governors, division of consumer and community affairs ( 2013 ), “ community bank risk - focused consumer compliance supervision program ”, consumer affairs letter ca 13 – 19 ( november 18 ) ; http : / / www. federalreserve. gov / bankinforeg / caletters / caltr1319. htm, and “ consumer compliance and bis central bankers ’ speeches intensity more explicitly on the individual community bank ’ s risk profile, weighed against the effectiveness of the bank ’ s compliance controls. we expect that examiners will spend less time on low - risk compliance issues at community banks, increasing the efficiency of our supervision and reducing regulatory burden on many community banks. much of the work to tailor our supervisory requirements and programs is being overseen by the community bank subcommittee of the board ’ s committee on bank supervision. this subcommittee oversees the supervision of community and regional banks and reviews proposed supervisory policies to help ensure that they are appropriate for, and tailored to, community banks. this subcommittee was formed several years ago under the direction of now former governors betsy duke and sarah bloom raskin, and i want to assure you that the subcommittee will continue to play an important role in helping ensure that our supervisory policies make sense for community banks. i should also add that we are working closely with our colleagues at the state level to help ensure that our supervisory approaches and methodologies are as consistent as possible. conclusion in closing, let me repeat my strong belief that community

will be right, i envisage two possible ways forward for the major swedish banks, both of which represent extremes. the first strategy would be based on the banks ’ proven proficiency in terms of organisation and distribution, and to refine this strength and also become better at peripheral advisory services. fewer resources would be invested in product development and risk - taking – products can easily be copied and risks sold on to other, hungrier investors. the second strategy would instead be to rediscover what you could call “ classic ” banking, in other words healthy risk - taking underpinned by better knowledge about certain risks and conditions than the market in general. as long as higher loan losses and larger earnings fluctuations are kept at a bearable level and are compensated for by higher margins, then risk - taking in itself is not bad business. however, as a central bank governor i do not want to inspire the banks to take on higher risk but instead would encourage them to make use of the opportunities in today ’ s financial markets to repackage and spread risk, but like i said that is a different perspective. 4 / 4