The burden of regulatory compliance can be particularly daunting for small banks. And competition, from large banks and credit unions as well as other nonbank financial service providers, is always a concern. My colleagues on the Federal Reserve Board and I are committed to making sure that we understand the challenges faced by community banks.
One way that we further our understanding is by talking to the bankers themselves. The entire Board of Governors meets twice a year with the Community Depository Institutions Advisory Council, which includes representatives of community banks, thrifts, and credit unions in each of the 12 Federal Reserve Districts.3 Individual governors also take advantage of opportunities to meet with community bankers from time to time.