Featured Product

    OFR Annual Report Describes Risks to Financial Stability as Moderate

    December 11, 2019

    OFR released its 2019 Annual Report to Congress, which examines risks to financial stability in the United States. The report assesses the state of the U.S. financial system as required by the Dodd-Frank Act, including an analysis of threats to the financial stability of the United States, key findings from the OFR research and analysis, and the status of the OFR efforts in meeting its mission. The report also includes a discussion of OFR data initiatives and information about the initiative to refocus the OFR mission on primarily supporting the Financial Stability Oversight Council and its member agencies.

    The report highlights that, during 2019, OFR worked to fulfill its data-related mandates, including issuing a final rule to collect data covering centrally cleared funding regarding transactions in the U.S. repurchase agreement market, which will support a reliable, widely accepted, and transparent alternative to LIBOR. As part of other data initiatives, OFR made significant contributions toward reporting of standardized derivatives data and helped to advance the adoption of the Legal Entity Identifier (LEI), which continues to grow rapidly. OFR also continued to enhance its information technology environment and offerings. 

    The report states that risks to financial stability remain in the medium range, reflecting a mix of high, moderate, and low risks in the financial system. Risk is moderate in four categories—macroeconomic risk; credit risk; liquidity and funding risk; and contagion risk. Non-financial corporate credit risk has continued to rise, but household credit risk has improved. Liquidity and funding risk rose temporarily at times during the past year, but then moderated. Contagion risk is little changed. Risks associated with solvency and leverage appear relatively low. Market risk remains elevated. Although banks and insurers maintain leverage ratios consistent with low risk, leverage continues to rise among large hedge funds that may be interconnected with systemically important financial firms.

     

    Related Links

    Keywords: Americas, US, Banking, Insurance, Securities, Credit Risk, Market Risk, Liquidity Risk, LIBOR, Annual Report, OTC Derivatives, OFR

    Related Articles
    News

    BoE Seeks Information Before Migrating Statistical Reporting to BEEDS

    The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.

    October 25, 2021 WebPage Regulatory News
    News

    FCA Publishes Final Rules on Investment Firms Prudential Regime

    The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).

    October 25, 2021 WebPage Regulatory News
    News

    CFRF Publishes Guides to Manage Financial Risks from Climate Change

    The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.

    October 21, 2021 WebPage Regulatory News
    News

    PRA Finalizes Policy for Non-Performing Exposure Securitizations

    The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.

    October 21, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EU to Explore Potential of Establishing a Joint Cyber Unit

    The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.

    October 19, 2021 WebPage Regulatory News
    News

    EC Sets Out Work Program for 2022

    The European Commission (EC) adopted the work program for 2022.

    October 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7598