I also know that supervisory expectations in these areas can be challenging, and I have experienced it myself. There are several things I believe we can do to help provide clarity and transparency, reduce confusion, and simplify and remove some of the burden community banks face in this area.
The Federal Reserve believes that U.S. banks are second to none in their ability to compete when they are given the opportunity of operating on a level playing field. Providing strong supervision at home and participating in international regulatory and supervisory groups such as the Dialogue helps assure that our banking organizations will continue to have such opportunities. BIS Review 28/2004  5