into account their distinct role and contributions. overall, the federal reserve has sharpened its focus on financial stability and is taking that goal into consideration when carrying out its responsibilities for monetary policy. i support these developments and pledge, if confirmed, to continue them. our country has come a long way since the dark days of the financial crisis, but we have farther to go. likewise, i believe the federal reserve has made significant progress toward its goals but has more work to do. thank you for the opportunity to appear before you today. i would be happy to respond to your questions. bis central bankers ’ speeches

programs here have expanded their offerings to deliver education, training, and various other services to nascent entrepreneurs. the goals of these supplemental activities are twofold : to improve the survival rate of the borrowers'startup businesses and to mitigate credit risks for the lender. several factors have driven the u. s. microfinance industry to diversify beyond simply lending. the complexity of the u. s. market for financial services requires greater financial management skills than are typically needed in developing countries. here, even very small businesses are likely to have to deal with factors – such as taxes, licenses, and zoning laws – that can prove daunting hurdles to the inexperienced, aspiring business owner ( assanie and virmani, 2006 ). by contrast, entrepreneurs in developing countries tend to operate in the informal sector, often out of the sight of regulators and tax authorities. yet another difference between the u. s. context and that of the developing world is that, in the united states, aspiring entrepreneurs may have access to alternative sources of credit. although they may not be able to obtain traditional small business loans, some can qualify for credit cards, home equity credit lines, or other alternatives to microcredit, whereas many of grameen bank's clients in bangladesh, for example, have no such alternatives. thus, while lending remains a very important part of u. s. microfinance programs, it is not as central to the broader mission as is typically the case in the developing world. in helping local enterprises get under way, microfinance organizations help deliver the social benefits often associated with such businesses. for example, microentrepreneurs often involve their family members in their businesses, providing them valuable work experience ; and extra income can confer important advantages on future generations, such as a chance for a better education. in addition, entrepreneurs may benefit communities and local economies in multiple ways, as this story of a woman who resides in one of houston's poorest neighborhoods illustrates. observing the lack of grocery stores in her community, she approached accion texas for funds to open a small organic food store and restaurant. with the help of the microloan, she created a viable business while also improving the options for food shopping in her community. she also provides various services, including neighborhood cooking classes that promote healthy eating habits. accion usa, about us : our impact, www. accionusa. org / site / c. lvkvl9