Fed Gov. Raskin Discusses Small-Bank Supervision
Blue crabs and banking regulation might appear completely unrelated. But in a recent speech about small-bank supervision, Federal Reserve Governor Sarah Bloom Raskin cited the prevalence of the crustaceans as an example of why regulators must have a deep understanding of the local concerns of community bankers and their customers.
The importance of thinking locally
Chesapeake Bay crabs are a culinary and economic staple in communities surrounding the bay. Raskin, former commissioner of financial regulation for the state of Maryland, explained the Fed's differing approaches to supervising community banks and larger, more complex banking companies.
Flow of credit receives supervisory attention
"One of the things that I try to do whenever I review policies is to draw on my experience of working with community banks in Maryland and think about the effects these policies are likely to have on community banks and the areas they serve," said Raskin, a member of the Federal Reserve Board subcommittee that oversees the supervision of community banks. "Ideally, our supervisory policies result in stronger community banks that are able to lend and promote sustainable economic growth in their communities."
January 19, 2012