March 20, 2006 News Archive

Chairman Bernanke Addresses Community Bankers
Nonbank firms pose an increasing threat to community banks, according to Chairman Ben Bernanke. Addressing the convention of Independent Community Bankers of America last week, Mr. Bernanke reported that most small businesses now use a nonbank to meet some of their financial needs.

Chairman Bernanke also said that well-managed and innovative community banks will continue to play a critical role in the U.S. economy. While supervisors do not have broad concerns about community banks, he singled out a few risk issues: high and increasing commercial real estate concentrations, rising short-term interest rates , and increasing reliance on wholesale funding.