The Power of Community Banks: A Vital Link to Local Economies
In a pre-recorded video address, Chair Jerome H. Powell emphasized the significance of community banks within the U.S. financial landscape. With a warm welcome to the Federal Reserve Board, he expressed regret for his absence due to travel, extending gratitude to Vice Chair for Supervision Miki Bowman for hosting the conference and acknowledging the dedicated Board staff.
Community banks, Powell highlighted, are more than just financial institutions; they are the lifeblood of local economies. Their strong connections to the people and businesses they serve, coupled with direct knowledge of local economic conditions, make them indispensable. This unique relationship allows community bankers to deeply understand their customers, leading to tailored products and services that meet the specific needs of their communities.
Powell's personal experience as a governor leading the Board's community and regional bank subcommittee, as well as his interactions as a community-bank customer, have solidified his belief in the critical role these banks play. He sees them as a bridge between the Fed and local communities, a perspective he aims to share with Fed leaders today.
"Today's event is an invaluable opportunity for Fed leaders to engage with community bankers and gain insights into the challenges they face. We are dedicated to understanding these issues and adapting our supervisory practices to reduce unnecessary burdens on community banks while ensuring their continued safe and sound operation."
Powell concluded by expressing gratitude to the community bankers for their presence and for being the heartbeat of the communities they serve.
Last Update: October 09, 2025
