The New Landscape for Banking Competition Remarks by Michelle W. Bowman Member Board of Governors of the Federal Reserve System at 2022 Community Banking Research Conference Federal Reserve Bank of St. Louis  September 28, 2022  Good morning and thank you, it’s great to be back here in St. Louis for this year’s research conference.
This divergence seems to be related to inefficiencies in the reallocation of resources from the least to the most productive firms within each sector, rather than inefficient allocation between sectors. Factors that drive such capital misallocation5 appear to be partly related to market rigidities, poor policy reactions and banks’ reluctance to address their non-performing loans.