. these were not the only factors contributing to the firm's failure, but these critical elements should have been the key priorities for the supervisory function to address after the bank's failure. and yet in the aftermath of svb's demise, we have focused on regulatory proposals ranging from substantial increases in bank capital requirements, to pushing down global systemically important bank ( g - sib ) and large bank requirements to much smaller firms, finding supervisory deficiencies in the management of wellcapitalized and financially sound firms, and considering widespread changes to the funding and liquidity requirements and expectations that apply to all banks. a crisis is not a regulatory blank check. in some ways, it presents heightened risks that should prompt us to show our work even more carefully. a deliberate, transparent, and 5 / 9 bis - central bankers'speeches fact - based approach to pursuing statutory objectives also serves the goal of avoiding the impression of pursuing unrelated policy goals, particularly those that venture into political concerns outside of an agency's purposes or functions. promoting safety, soundness, and financial stability should not devolve into an exercise of regulatory allocation of credit - picking winners and losers - or promoting an ideological position through more open - ended processes like bank supervision and examination. effective and efficient solutions once we have a clear and thorough understanding of our statutory objectives and have a framework to identify issues, gaps, or redundancies, the next task is to focus on finding efficient solutions to those issues. in doing so, we should consider policy alternatives and perspectives that may differ from our past approach. we should also acknowledge that we may not have all the facts or information necessary to immediately identify an effective solution. successful policymaking requires openness and humility, caution, and a deliberate approach. with respect to monetary policy, uncertainty surrounding available data and the many variables that can affect future economic conditions suggest that we should pursue a cautious approach. at the most recent meeting in november, the committee decided to take an additional step along the path of moving toward a more neutral policy setting. i agreed to support this action, since it aligns with my preference to lower the policy rate gradually, especially in light of elevated inflation and the uncertainty about the level of the neutral rate. my estimate of the neutral policy rate is much higher than it was before the pandemic, and therefore we may be closer to a neutral policy stance than we currently think. i would prefer to proceed cautiously in bringing the policy rate down to better assess

janet l yellen : welcoming remarks speech by ms janet l yellen, chair of the board of governors of the federal reserve system, at the fifth annual community banking research and policy conference " community banking in the 21st century ", cosponsored by the federal reserve system and conference of state bank supervisors, federal reserve bank of st. louis, st. louis, missouri, 4 october 2017. * * * i am very glad to welcome everyone here to this conference sponsored by the federal reserve system and the conference of state bank supervisors. since the first of these gatherings five years ago, this research and policy conference has established itself as an important event where industry leaders, academics, and supervisors discuss the latest research and exchange ideas about promoting a healthy and growing community banking industry. all of us share an interest in seeing that community banks continue their vital role in their customers ’ lives and in a strong and stable u. s. financial system. the fed has been working hard to ensure that its regulation and supervision of banks are tailored appropriately to the size, complexity, and role different institutions play in the financial system. for community banks, which by and large avoided the risky business practices that contributed to the financial crisis, we have been focused on making sure that much - needed improvements to regulation and supervision since the crisis are appropriate and not unduly burdensome. one way we are doing this is through the regulatory review required by the economic growth and regulatory paperwork reduction act, known as egrpra. the first step we took, pursuant to egrpra, was to listen to industry and others with a stake in how community banks are supervised, which was accomplished through soliciting written comments and by holding six outreach meetings in 2014 and 2015. our egrpra report, issued in march, was focused on community banks, and it noted steps that had already taken place, for example, to simplify call report requirements and expand the number of firms eligible for less frequent examinations. since that report, the board of governors, along with the federal deposit insurance corporation and the office of the comptroller of the currency, has proposed a rule expanding the number of commercial real estate transactions that will no longer require an appraisal, allowing for a less detailed evaluation. and just last week, the fed, along with other regulators, took a significant step to reduce the regulatory burden on community banks and other smaller and less complex institutions by proposing to simplify several requirements in the regulatory capital rule.