How Bible Sales and Chipotle Explain the US Economy

Good afternoon. On behalf of the Federal Reserve Bank of Dallas, I would like to extend a warm welcome to each of you. I’m required to give the official disclaimer that these are my views and not necessarily those of my Federal Reserve colleagues, but on the warm welcome at least, I think we are unanimous. I am so happy you joined us for a deep dive into a vital part of the financial system: bank funding. I’m a big believer in the power of diverse ideas and open debate. To properly discuss this topic—or really any important economic or financial issue—we need to hear a wide range of perspectives. That includes the voices of policymakers, academic researchers and especially experts working in the field, in this case, bankers. At the Dallas Fed, we are working to build a strong economy together, so we greatly appreciate all of you joining us from across the nation to engage in these conversations. This is our second annual conference on bank funding, and I know the discussions will only get deeper and richer as we continue each year. I’m also delighted to welcome my dear colleagues from the Cleveland and Atlanta Feds, Beth Hammack and Raphael Bostic. It’s always a privilege to spend time with Beth and Raphael, either at our Federal Open Market Committee meetings in Washington or anywhere else. I’m pleased we are sponsoring this conference together, and I look forward to hearing their views during their fireside chat tomorrow. Banking is crucial to our economy, and funding is crucial to banking. By taking deposits and making loans, banks enable customers to safely save money and finance investments that grow their families, businesses and communities. A vibrant banking ecosystem ensures that customers of all kinds can find banks that meet their needs. And funding is at the center of this business, because funding is how a bank receives excess cash from customers who have it and transforms that cash into a loan that fuels investment and economic growth. Funding can take many forms, from small retail deposits to wholesale debt. That variety both helps banks meet their evolving needs and supports a variety of banking business models. Banks have the preeminent responsibility for managing their own funding and funding risks. However, government policies do affect the funding environment for banks. I’d highlight two policy issues that will be a focus this afternoon. Fed's Logan does not comment on economic outlook and monetary policy in opening remarks for banking funding conference.