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Welcoming Remarks: Community Banking in the 21st Century
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September 23, 2014
St. Louis Fed President James Bullard welcomed bankers
and researchers to the second annual community banking
research and policy conference, hosted by the Federal
Reserve System and the Conference of State Bank
Supervisors. He highlighted the importance of community
banks to the Eighth District’s economy and noted that the
two-day conference should, once again, expand the
understanding of the challenges and opportunities facing
community banks.
Remarks: pdf | text (below)
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Full text of remarks:
Welcoming remarks by James Bullard, President and CEO
Second Annual Community Banking in the 21st Century
Conference
The Federal Reserve System and Conference of State Bank
Supervisors (CSBS)
St. Louis, Mo.
Sept. 23, 2014

Good morning, and welcome to the Federal Reserve Bank
of St. Louis for the second annual Community Banking
Research and Policy Conference, hosted by the Federal
Reserve System and the Conference of State Bank

James Bullard
President and Chief
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"Rationally, let it be said in a
whisper, experience is certainly
worth more than theory."
Amerigo Vespucci

Supervisors.

Last year, we had the privilege of hosting a very successful
inaugural conference, which provided a unique opportunity
to hear and discuss not only cutting-edge research in the
community banking space, but also to hear the views of
community bankers, policymakers and regulators regarding
pressing issues and the future of community banking. The
response of attendees was very positive. As a result, the
Fed and CSBS unanimously decided to hold the conference
on an annual basis here in St. Louis, the heartland of
community banking.

Community banks are important to the Federal Reserve’s
Eighth District. There are more than 625 community banks
in the District (of which 127 are state members) and 522
holding companies. Two community bankers serve as
directors on the board of our head o ce, and several
community bankers serve on the boards of our branch
o ces, which are in Little Rock, Ark., Louisville, Ky., and
Memphis, Tenn. As with other Reserve banks, community
bankers advise us on a variety of matters through our
Community Depository Institutions Advisory Council.
Services ow both ways as we are very involved in
providing information and training to community banks
through a variety of programs. In fact, this fall we will pilot
a revitalized learning program for bank directors, based on
the popular "Basics for Bank Directors" curriculum written
by the Federal Reserve Bank of Kansas City.

Our supervision of community banks is a partnership with
state regulators. Here in the Eighth District, we have the
opportunity to work with Candace Franks from Arkansas
(who is also this year’s CSBS chair), Manny Flores from
Illinois, Dennis Bassett from Indiana, Charles Vice from
Kentucky, Jerry Wilson from Mississippi, Debra Hardman
from Missouri and Greg Gonzales from Tennessee. I know
my colleagues across the Federal Reserve System place
great value on the information and insights they gain from
maintaining regular and substantive engagements with
state bank commissioners.

Community banks are important to the economy of the
Eighth District, but we all know that their business model is
under pressure. The research presented at the inaugural
conference pushed our understanding of the opportunities
and challenges facing community banks. Looking at the
agenda for the next two days, I have no doubt that this
year’s research and panel discussions will do the same.
One important measure of success is the degree to which
we broaden the dialogue on community banking and
promote further thinking in this sector. We had a signi cant
increase in the number of paper submissions this year, and

believe we’ll see even more in the upcoming years.

I've always believed that good research leads to good
policy. Or, said another way, there cannot be good policy
without quality research. I would like to thank all of you
who have focused your research on the community
banking industry and look forward to another great
conference.

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