In that role, I was responsible for the supervision of a substantial number of community banking organizations in the nine states of the San Francisco District. Among the lessons that experience reinforced is that when it comes to bank regulation and supervision, one size does not fit all.
To effectively promote safety and soundness and ensure consumer compliance without creating undue regulatory burden, rules and supervisory approaches should be tailored to different types of institutions such as community banks. The Federal Reserve supervises more than 830 community banks and more than 4,000 holding companies that control small depository institutions. These are banking organizations with total assets of $ billion or less.