Experiencing unprecedented declines in activity. Although the remains considerable uncertainty about the economy, we know that the Banking System has served as a source of strength throughout this period. They have supported their customers and committees by pppinating 500 million in loans. The Banking Systems ability to support the economy reflects the Industries Strong capital and liquidity position. In the Second Quarter of 2020, Equity Capital increased to more than 2. 1 trillion, which 13. 4 . Ted to highervels were slightly than the quarter preceding the pandemic. Taken meaningful action to provide banks while maintaining safety and soundness. I will provide an update in five areas in which we have made significant progress. Supporting communities in need, encouraging outstanding loan making. I would like to briefly touch on each of those, starting with our response to the Economic Risks related to covid19. We undertook a series of actions that helped maintain stability in financial markets. Many targeted, temporary revelatory changes to facilitate lending. Over the past six months, we have taken additional regulatory and supervisory action in support of these objectives. We continue to monitor considers and we will Additional Guidance as appropriate. Readiness, we responded to the Immediate Impact of the pandemic and we focused on enhancing our resolution readiness. Although we entered the pandemic with an historically low number of Bank Failures, we recognized the absence of failures could not last forever. Capabilities by centralizing our supervisory positions for the largest banks, establishing new approaches to out protect the help of our employees during the pandemic, or needing with her International Counterparts for global systemic banks, carrying ,ut targeted engagement reviewing institution and financial Industry Data to inform Resource Management and prepare for activities if necessary. We have been mindful of supporting communities in need. As the pandemic continues to distract the daily lives of all american, we are particularly mindful low income and minority communities have suffered disproportionately. We placed an ohio control in helping these institutions meet the needs of their customers and community. It increases inclusion in traditionally underserved communities and one of my priorities has been expanding one of the options for exploring is a framework and investors interested early in particular counties. There would be channels to make investments in their still developing details but expecting more information in the near future. As they consider additional ways to make inclusive Banking System , we must recognize the financial benefits. It provides access to new products and services and a recent biennial survey shows that the individual is increasingly moving to digital banking. Continue, they should be able to improve the way banks are rate how they are wee to serve their customers recently saw feedback on a groundbreaking approach to Building Technology partnerships our crest for information proposes a partnership to help. Roduce the and uncertainty reducing these barriers to innovation is particularly important for Community Banks and we look forward to reviewing information from interested developing then next generation of Advisory Technology to reduce regulatory costs and improve the ability to quickly identify emerging risks. Lessons learned in these events will not only increase the effectiveness but also lay the foundation for streamlined tech integration. We continue to focus our efforts with the Financial System and there are two rules in section 19 of the fbi act, both of which bring clarity to the market. Regulators,with modify requirements regarding the collection of the initial mark, and establish a longterm quiddity market. To finalize two additional roles in the near future. Lets wrap up soon. Thank you for the opportunity to testify. No problem. Finally, chairman hood . Thank you good afternoon, chairman, Ranking Member and members of the committee. Thank you for the opportunity to provide an update on the state of federally insured credit said efforts to assist. Credit shares rose to trillions of dollars. , the ncua hash worked to provide Credit Unions with relief and flexibility so they could continue serve member who protect our staff and we all continue to work remotely and effectively. We have issued 11 interagency statements for the industry to date helping Credit Unions address the risks and changes that have been made in response to the pandemic. Bey have provided who will the assistance for income and credited minority assistance. It went directly to covid19 assistance. The Credit Network increased 6. 6 to 182. 9 billion. It is well above the 7 center. Our requirement the fund is also strong in the ratio remains well within the statutory range credit act. Need gets there is no there is no need for Credit Unions rising to an alltime high of 1. 5 trillion in all major categories credit meters collectively extended a . 4 billion in loan under the Paycheck Protection Program within an average loan amount of 49 dollars. Like capital, liquidity is a pillar of strength upon the bedrock of which the system rests. They have contributed greatly to bolstering availability of liquidity in the system since the act was signed into law, they have successfully convinced Credit Unions to join the clf. Today, the capacity has expedient exceeded 32 billion. They have provided muchneeded authority for the cares act, however i respectfully request these changes be extended for the pandemic duration so they onerespond effectively important lesson is the need for greater inclusion. Not the least of which is that pandemic has had an impact on communities of color. Since becoming the 11th chairman, i have made Financial Inclusion a priority within the agency and credit as a whole i recently reinforce that , advancing communities to credit, education, stability and support. This is an attempt to modernize and refresh programs that all support the agency system. And will address the specific needs of diverse. In closing, i would like to thank the committee for the opportunity to appear before you today and discuss how they are to help them during this challenging time. I look forward to your questions. Thank you for the opportunity to be here and thank you for your leadership. It has been an absolute pleasure. I would like you all to keep your responses to the 30 or 45 second is like to get a question as well. Fed in october asking each of you to use your discretion to minimize the regulatory effect. I have that some of you have taken actions in that regard. However, there are still a litany of rules that impose a burden on our institution simply from passing assetbased rigging tory thresholds. The question i have first is what additional areas can you use your discretion in their subject to significantly more burdensome regulation different from participation that are eventually expected to revert in size eventually . I am happy to start with an answer to the. Flexibility in our Regulatory Framework with respect to some of the measures and increased a stringency. And we aree that continuing to look as to whether with respect to some of the majors, we are not currently seeing they are going to pose a problem. Principally an issue for Smaller Banks being pushed up and the larger banks being pushed into the next category or whatever we are not seeing that is actually happening with the larger banks but Smaller Banks can be put in some materially thinkifficult areas and i we need to look at what we need to do their. I would begin by echoing the statement in the recent remark that members of the board of that are subject to asset size thresholds. Theyre currently working on a set that would relieve for a time certain asset that trigger heightened scrutiny. And just Orient Committee members on this, there are a number of different requirements to kick in. And i think the direction of that discussion is something that will cap out at billion dollars. Vice chair has it exactly right that larger levels, banks are capable but it is Smaller Banks that have difficulties. Just close by saying that one thing that is important thee must accommodate dislocation created by the covert pandemic situation and at , it is important to supervisors that we have reals ability. Chairman, were down to just a minute so you got a little cheated here. I got a little cheated earlier. I will yield the time for chairman hood just a small banks have done a disproportionate amount of lending. It is only appropriate they look at control and accommodate them. Chairman, my specific question this to see if you can focus on the comments youve heard. It really is important. One of the things i wanted to note is that credit and chairs in the last thing we need is for a third of americans to not have act credit during this time if we could provide any kind of relief which would simply be greatly appreciated. It allows management to focus solely on meeting the needs of member owners. I think if we can provide the relief at a temporary basis, safety and fairness will still be preserved and i did write this so any relief we can get would be greatly appreciated. Brown . Tor we have all had an opportunity to serve the country at the highest levels. As this administration winds down like to thank you for your service. Looking back, i do think you have left your agencies, much less american families. I dont think you have left them better off that when you took office. Each of you couldve done so much more to improve american lives especially during these last months. Instead, you finalized the wall street wishlist. Ise chair for all, your job one of the most crucial to prevent a banking crisis in 2006, you painted an optimistic picture of the economy, saying your offering quote perspectives me likeand it sounds to an economists shouting fake news. The 2008 crisis was very real, and as far as i can tell you learned nothing from it you now insist that even though millions of struggling to stay their jobs and houses, the future is right. It will inevitably cause normas losses for banks. For almost a year, you have ignored the pleading for me and other to stop Bank Dividends protect the Financial System. The recent fed recognition to address racial inequality is another lesson from 2008, that a financial crisis would disproportionately destroy wealth and opportunity for people of color. Last week, 80 million voters rejected that thinking. It ensures the viability of small banks keeping your deposit safe. Roles thatey have are meant to keep megabanks from crashing the entire system, risking a repeat of the hundreds of failures that happened in the last crisis. Thatpproved a merger created yet another to big to fail banks that will likely muscle Smaller Banks out of existence. Recently, you decided to short data that proves millions of households dont have all the Banking Services they need. It by literally erasing those families from the fdic it is many of the same people would suffer. Your tenure has made life easier for big Bank Executives but it is going to hurt the communities your agency is supposed to serve. Last week, 80 million voters rejected that thinking. He was known as a foreclosure machine. It makes no sense that the outgoing president handed the wheel to the economy to sony people who had a hand crashing 2008 even though you are running without the approval of the senate you have made sweeping changes to regulations used to lobby for. This type of selfdealing that has eroded so much trust in government and the. And last week, 80 million American Voters rejected that. Chairman hood, you are the only one i voted for for confirmation. Youre providing credit in black and breck unities in small towns we have aamerica unique ability to help those left out of our Financial System but instead of standing up for them it seems you are more we now on currying favor have an opportunity for financial regulars to do what they should be doing. Thetions have consequences wall street first attitude is over and president elect biden my colleagues on this committee know he is the president elect but fear keeps them from saying. Will have then opportunity to install watchdogs that their government is on their side. Thank you. We will now turn to senator to i would like to begin by congratulating each of our witnesses i would congratulate you on doing some outstanding. Think about what they have been through as country. Yearsrst pandemic in 100 in the first time in the history of the republic that our state intentionally closed our economy. It has never even been complement contemplated before, much less taken place. We all understand why but what i find extraordinary is that despite the unprecedented catastrophic illumination of our economy for some time, yet andst no Bank Failures america rose to the challenge. Providing credit to small and mediumsized business consumers on a scale that most of us probably never imagined, that Financial Institutions weathered the storm because they were well regulated, wellcapitalized ready and willing and effect did respond to the needs of their it amers, men and women remarkable success story. Stress that part of what is made that possible the and i wantn the lead chairman for the vice that i believe those facilities were a remarkable success. Intended to restart the private lending of americas economy. To provide a backstop so that private capital could flow in businesses could borrow and therefore stay alive keep those workers in place and have an economy when we get to the other side what happened is as soon as the roast as those programs were authorized, capital start flowing like never before. Corporate bond market and high yield and credit alltime record issuances. Available very reason and its a big the economy has her covered as rapidly as it has we know theres work to do but economists all over the world thought it would be 10 limit by the end of the summer and it is not. If the program did their job, the private sector is providing the capital it needed, is now time to terminate these programs and frankly to take a victory lap, that we have gotten our economy back on track and it is definitely heading in the right direction. Followup on the question raised by the chairman. There was a discussion about the increased regulatory burden. For no reason other than the fact they really stepped up and respond to the crisis by triggeredand that has of regulations, the most costly of which is the government mandated pricefixings. I would just urge you to consider ways in which you might ensure that we dont punish. Anks aboutd like to ask also the transition away from libor and i mostly concerned about the contracts that have existed for years and extends into the church. The index is available for ongoing payment. What are we going to do about and thephan contracts data in which we expected no . Onger be operable i think we could consider a mechanism that would and now socalled legacy contracts to basis on their existing without having to be renegotiated. Allow the continuation in the writing of contracts. I think there are a variety of ways to do that we have been. Iscussing that with the banks within the next month or two, we have a plan this year that will address that. Obviously, it is a reference based upon the zero dollar deposit market and it continues. What makes sense to simply have a different mechanism for establishing with the side of that market is . We could think about that. It would be synthetic and synthetic reference rates are something the bank of england have thought about. , because of the litigation framework i want to think of other ways to try to address that issue. Mr. Chairman, i dont see 00. You are a little over. I apologize and i yield. Senator reid . Thank you very much, mr. Chairman, in a station in the river 23rd, you agreed with chair powell we will take continuous support to stay whichobust recovery implies a second major covid bill. Position . Ill your i would say that if there is to be another active cares act stimulus is ultimately a as we lookr congress at the evolution of the economy as the senator noted, the economy is recovering more robustly and rapidly than we had , even thene spring we expected a couple of months ago. Out,when we get reports the numbers improve. I think probably the most accurate thing to say would be the Additional Support but i woulderway not want to say this point that it was necessary. Going back to what you and the chairman said not too long ago one of the major aspects of the cares act could support the local government. It is, i think, critical to do they are running into really difficult choices in terms of praying Public Services and raising taxes. And without Additional Support, they will have to do that, which i dont think will help stimulate the economy or aid the did y so one thing we so its something we did in local assistance that we did not do in the cares act it draws distinctions between the kind of support the fed provide to spec start lending. Governmentsny local , may not be the answer to their issues to acquire more debt and ourts they could acquire that they be made providesn terms additional fiscal support and the latter would be again a decision the congress would make and require cut quite different tools. But it would complement w