The global economic recovery might also be delayed reaching the region, increasing the likelihood that the crisis may cause more persistent economic effects. Despite this difficult situation, remittances have proven pandemic-proof1 and have behaved countercyclically in most of the region’s countries, assuming a more important role as a source of external financing. This subject is crucial to Spain, since it is the second-ranked issuer country of remittances to Latin America. Some of the topics we will address today (such as the growing importance of digital money remittances, the role of fiscal stimulus measures in the resilience of remittances and the function of the informal economy) are key to understanding the behaviour of the flow of remittances in this crisis. Undoubtedly, today’s event will allow us to better understand these developments and – I hope – 1/2  BIS central bankers' speeches  to draw some useful conclusions on how to tackle them from the central bank standpoint. Thank you for your attention. Remittances barely fell by 1.6% in 2020, compared with their 4.8% decline during the 2008 financial crisis. 2/2  BIS central bankers' speeches
We’ve also observed community banks participating with other banks on real estate lending, in part to better manage real estate concentrations. Community banks are also seeking to differentiate themselves from their larger competitors by marketing their more individualized customer service. In regard to liquidity, a number of community bankers have noted the influx in public deposits and the challenges associated with putting these deposits to productive use. Finally, although there has been a material improvement in asset quality over the last several years, it will be important for senior management to continue to be prudent in their underwriting practices and in monitoring any emerging risks in their portfolios. The economy continues to show a strong trajectory, but of course we need to remain alert to any potential slowdown. As Second District community banks grow in line with their national peers, we are encouraged by the increased reliance on core funding and strong asset quality. We will, however, continue to monitor developments that may pose a risk to the safety and soundness of the financial and banking system. Fintech A second major change for community banks—like all banking institutions—is the potential competition from new “fintech” firms. Since 2012 there has been over $ billion in US-based fintech investments including online lending-based platforms, capital markets, and payment and 2 2/4  BIS central bankers' speeches  settlement services.2 By offering traditional financial services to customers through new, innovative platforms and channels, these fintech firms pose a challenge to traditional banking business models.