Bernanke: Conditions 'Still Difficult’ for Banks

Federal Reserve chairman Ben Bernanke kept his emphasis on “still-difficult economic conditions” and market “uncertainties” in a speech to community bankers Wednesday.

Bernanke, in remarks prepared for delivery to a meeting of the Independent Community Bankers of America in San Diego, said the nation’s smaller banks were hit hard by the financial crisis and recession, and that though they are recovering, they will need more time to repair their balance sheets.

Bernanke avoided monetary policy and, for the most part, the economic issues buffeting policymakers.

But he did make glancing reference to continued problems facing the United States and its banks. He made no mention of inflation.

“Community banks face substantial challenges in the months and years to come, including still-difficult economic conditions, continued uncertainties in real estate and other key markets, and a changing regulatory environment,” he said.

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