WASHINGTON — Community banks, once again solidly profitable and with capital ratios often better than larger banks, should not end up at a disadvantage as new rules are developed, Federal Reserve Gov. Sarah Bloom Raskin said Thursday.

"While we attempt to craft a risk-based system that makes sense from the perspective of safety and soundness, we have to resist the temptation to believe we can create a perfectly sensitive risk-based regime that gives the illusion of safety" for the banking system," Raskin said in remarks prepared for community bankers in Columbus.

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