1
Remarks by
Jelena McWilliams
Chairman
Federal Deposit Insurance Corporation
at the
Federal Reserve Bank of Chicago
Thirteenth Annual Community Bankers Symposium
“Back to Basics”
Chicago, Illinois
November 16, 2018
Good morning.
I’m very pleased to join my fellow regulators in hosting this event,
which allows us to focus on the opportunities and challenges faced by
community banks. I thank all of you for your participation in this
important event.
As the primary federal supervisor for the majority of community
banks, the FDIC has a unique perspective on these issues. We are also
in a unique position to assess and observe the vital role that small banks
play in their local communities and in the U.S. economy overall.
Remarks by
Jelena McWilliams
Chairman
Federal Deposit Insurance Corporation
at the
Federal Reserve Bank of Chicago
Thirteenth Annual Community Bankers Symposium
“Back to Basics”
Chicago, Illinois
November 16, 2018
Good morning.
I’m very pleased to join my fellow regulators in hosting this event,
which allows us to focus on the opportunities and challenges faced by
community banks. I thank all of you for your participation in this
important event.
As the primary federal supervisor for the majority of community
banks, the FDIC has a unique perspective on these issues. We are also
in a unique position to assess and observe the vital role that small banks
play in their local communities and in the U.S. economy overall.
2
Community banks provide personal, relationship-based services in
communities across the country. They tend to understand the unique
characteristics of the local economy, businesses, and customers, and
play a vital role in meeting the credit needs of local consumers,
governments, and small businesses.
These institutions play a much greater role in meeting the credit
needs of small businesses than their asset size alone would suggest. At
mid-2018, for example, banks with assets less than $10 billion held
about 50 percent of small loans to businesses. A recent FDIC survey
suggests that the amount of loans to small businesses extended by small
banks may be even higher. Given that small businesses account for
almost half of all U.S. private sector employment, the support to
economic activity provided by small banks cannot be overstated.
Other metrics also underscore the important role of smaller banks
in supporting local economies. For example, in 627 U.S. counties, the
only banking offices are those operated by community banks. These
banks fill gaps and are essential to providing banking services to local
communities that may not be served by larger banks.
Community banks provide personal, relationship-based services in
communities across the country. They tend to understand the unique
characteristics of the local economy, businesses, and customers, and
play a vital role in meeting the credit needs of local consumers,
governments, and small businesses.
These institutions play a much greater role in meeting the credit
needs of small businesses than their asset size alone would suggest. At
mid-2018, for example, banks with assets less than $10 billion held
about 50 percent of small loans to businesses. A recent FDIC survey
suggests that the amount of loans to small businesses extended by small
banks may be even higher. Given that small businesses account for
almost half of all U.S. private sector employment, the support to
economic activity provided by small banks cannot be overstated.
Other metrics also underscore the important role of smaller banks
in supporting local economies. For example, in 627 U.S. counties, the
only banking offices are those operated by community banks. These
banks fill gaps and are essential to providing banking services to local
communities that may not be served by larger banks.