Fed’s Daly Says Regulation Should Help Community Banks Thrive
Federal Reserve Bank of San Francisco President Mary Daly says community banks are an important part of the economy and that regulations should be appropriate for their size and risk levels.
“Community banks play a crucial role in this ecosystem, supporting almost every geography in America,” Daly says in remarks prepared for a community bankers conference in Phoenix hosted by the American Bankers Association
The San Francisco Fed chief says central bankers are hearing “more and more” that the regulatory and supervisory framework doesn’t fit community banks’ size and risk
“The goal of regulation is not to remove all risk, but rather to ensure that banks manage it well,” she says
“Carefully considered and appropriately tailored rules, that evolve as the economy does, can ensure that banks of all sizes take appropriate risks and continue to thrive,” she says
Daly does not comment in her remarks on her outlook for interest rates or the economy
Source : Bloomberg
