Likewise, credit concentrations, especially in construction and commercial real estate, were lower for smaller banks than at the outset of the last financial crisis, and risk management of concentrations improved over the last decade. Smaller banks also entered the pandemic with high levels of liquidity, and this liquidity has further improved with deposit inflows associated with pandemic-related stimulus programs.
Overall, community and regional banks remain well positioned to continue to extend credit and play an essential role in supporting our nation’s recovery from the effects of COVID-19. With this in mind, on June 15 the Federal Reserve announced our plan to resume bank examinations.