These banks have long played a unique and important role in our banking system by providing access to credit and financial services in markets that have historically been underserved. The Federal Reserve, which supervises just under twenty of these institutions, is committed to promoting the success of the minority-owned depository institutions we oversee.
Such controls add to micro-prudential controls to ensure the soundness of individual institutions considered in isolation. Macro-financial policy settings are intended to deliver automatic stabilisation akin to that of fiscal (tax and benefit) systems, as well as larger buffers against system-wide shocks and some degree of leaning against strong credit upswings.