However, it is necessary to remain guarded in matters relating to economic growth and stability of an emerging market economy in the current global environment of high output-growth, notable inflation pressures, persisting global imbalances, incipient signs of repricing of risks, and perceived volatility of capital flows.
The impact of new regulatory costs in our model includes the hiring of additional staff, which results in higher total compensation and lower profitability. We then analyze the changes in the distribution of community bank profitability. 2  BIS central bankers’ speeches  Community bank consolidation The number of community banks in Minnesota has been falling for some time.