completely understandable in light of the number of new and urgent issues to be tackled. similarly, the involvement of political officials through the g - 20 was imperative to galvanize the legislative and regulatory processes of participating countries to undertake the breadth of needed reforms. but as we move toward administering these new standards and arrangements, we must rationalize the often confusing and duplicative process whereby the basel committee, the fsb, and some other bis committees are all involved in the same subjects. fortunately, the agenda breaks down rather naturally into the new substantive topics, such as resolution and otc derivatives, and the further refinement and implementation of established regulatory areas such as capital standards. the new topics play to the coordinating and gap - filling strengths of the fsb, which includes both regulators and finance ministry representatives, and which can parcel out appropriate components of larger projects to standard - setting committees. work in established regulatory areas obviously falls more appropriately within the province of the basel committee ( or with respect to some securities regulatory issues, iosco ), which consists of the regulators with responsibility for administering these standards domestically. in this regard, it is important that the independence of regulators established domestically also be respected internationally. bis central bankers ’ speeches conclusion the international dimension of financial regulation has grown even more important since the financial crisis. yet there are, as i have suggested, more subjects to be tackled. at the same time, the pursuit of efficient and effective regulation requires priority - setting by, and rationalization of, the web of international arrangements dealing with these issues. bis central bankers ’ speeches

to improve the ability of community banks to manage their third - party relationships effectively. by doing so, i believe we will be able to better support the ability of community banks to access innovative new technology and offer modern services to customers. - 13 looking ahead the kinds of advances in technology we are discussing here today present challenges and opportunities for banks of all sizes, including community banks. investments in new technology are likely to create implementation costs, and payment system innovations are no exception. testing new technology, upgrading software and processing systems, and integrating new systems with existing systems will require banks to incur costs and dedicate resources to implementation. community banks in particular may incur additional costs, for example to extend operating hours in order to facilitate payments during nonstandard business hours. however, technological advances also present opportunities for community banks to continue serving their neighbors, and payment services are a key component of this. since i joined the federal reserve, i have been on the road a lot, visiting federal reserve districts and talking to bankers, consumers, and community groups. i have been struck in particular by stories i have heard about younger generations of americans moving back to rural areas. these individuals may be returning to their hometown or moving out of urban centers, but they still have the same expectations for services like those that may be offered by larger banks with nationwide footprints. technological developments, like the payment system modernization efforts we have discussed today, allow banks across the country to meet these customer expectations and provide payment services on a competitive basis. i believe the federal reserve is uniquely positioned as a provider of payment services and as a supervisor of banks to ensure that our nation ’ s evolving financial system works for community banks. as a provider of payment services, our efforts to modernize - 14 the nation ’ s payment system through services like fednow and same - day ach will ensure community banks and their customers have access to today ’ s financial technology nationwide. as a supervisor of banks, we can support responsible innovation by reducing regulatory burden where we can, clarifying expectations, and improving the ability of community banks to manage their relationships effectively. collectively, i believe these efforts will help support a community banking sector that is well positioned to thrive and offer modern, innovative services to their customers. by providing such services, community banks can help ensure all americans can make payments safely and efficiently regardless of their location and that families across the country have access to financial services that are so important to their success and the success of our communities in today ’ s