12 NOVEMBER / DECEMBER 2021 functioning; support the flow of credit to households, businesses and communities; and reduce the bank regulatory reporting and compliance burden. You have commented on the importance of bringing credit and housing opportunities to low- to moderate-income communities. How can banks help with this effort? One of the key issues related to access to credit and home ownership is often geographic proximity to a financial institution. For this reason, it is important that we have a large and diverse landscape of banks located in or near every community across the country. Another important element of financial inclusion is financial education to empower consumers to select financial products that meet their needs while understanding what is required to maintain an account in good standing. Community banks are particularly engaged in financial education efforts with various organizations in their communities, from schools to churches to civic groups. While progress is being made in the effort to bring more consumers into the financial system, as shown by the FDIC’s 2019 survey, How America Banks, there is still more work to be done. Approximately 5.4% – or 7.1 million of U.S. households – are unbanked. To address the problem, we need to understand who the unbanked are, and why they have chosen not to participate in and/or have left the banking system. I am sure you are familiar with the “Bank On” program which promotes access to standardized low-cost transaction accounts for all Americans, particularly for the unbanked. To be included, an account must have the following features: $25 or less minimum deposit, free debit card, no overdraft or low balance fees, reduced monthly maintenance fees, $2.50 or less ATM fee when using out-of-network ATMs, free branch access and telephone banking, free bill pay, check cashing and monthly electronic statements. It’s innovative programs like this that help bridge the gap and bring credit and housing opportunities to low- to moderate-income communities. You also have spoken of the Federal Reserve’s work with high schools and universities “to inspire students’ interest in economics and finance.” Please elaborate. The Board is committed to inspiring students’ interest in pursuing education and careers in economics and finance, with an additional interest in expanding diversity. Let me share a few examples of efforts we undertake to advance this goal: • Twice a year the Board and System host an online Federal Reserve Board event: Exploring Careers in Economics. Staff discuss career opportunities and diversity in economics and share information about career paths within the Federal Reserve System. In 2021, we partnered with The Sadie Collective to expand their membership. • Annually, the Federal Reserve hosts the On Jan. 30, Michelle W. Bowman was sworn in for her second term as a member of the Board of Governors of the Federal Reserve System by Chair Jerome H. Powell. At center is Gov. Bowman’s husband, Wes Bowman.
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