Federal Reserve Chairwoman Janet Yellen made opening remarks Wednesday at the Community Banking in the 21st Century Research and Policy Conference at the Federal Reserve Bank of St. Louis.
Yellen’s speech did not touch on monetary policy.
Instead, the chairwoman assured more than 160 attendees that Federal Reserve board members know community banks are essential. "We know that community banks serve many customers that large banks do not and provide services that are not offered by large banks in communities," Yellen said.
She also told the group that the Fed is committed to maintaining a different set of regulatory rules for community banks than larger institutions. The Federal Reserve is undergoing a review of existing regulations required by the Economic Growth and Regulatory Paperwork Reduction Act.
Yellen said the Federal Reserve already has held four of six planned outreach meetings around the country.
"We have heard many comments about community bank concerns and are taking those insights into account as we consider options for alleviating unnecessary regulatory burden," she said.
This is the third annual Community Banking in the 21st Century conference to be held at the Federal Reserve Bank in St. Louis. It draws community bankers, regulators and academic researchers.
The event drew several reporters, as well, most likely because of Yellen’s presence. Last week, the chairwoman said the central bank’s interest rate would likely rise by the end of the year, then slowly increase as the labor market improves.
The Federal Open market Committee voted to keep the rate near zero at its last meeting in September. The committee will meet again in October and December.
Follow Maria on Twitter: @radioaltman
