"Community banks play a huge role. We have about 7,000 banks in the US, and only five or six of them are big ones."
That was among the observations of Federal Reserve Bank of New York President William C. Dudley as he participated in a moderated discussion on current economic issues at Rutgers University Wednesday morning.
The discussion was moderated by Eugene White, an economics professor at the university.
Community banks “know more about customers” and are therefore able to “make more nuanced lending decisions,” Dudley said.
The conversation covered a litany of other subjects related to current economic issues, including New Jersey’s slower-than-average economic growth, Bitcoin and fintech lending.
Dudley attributed New Jersey’s economic lag to population growth as people continue to move out of the state and northeast region as a whole.
He also said that Bitcoin and fintech lending, or peer-to-peer lending, are two things that the Federal Reserve is following closely.