Featured Product

    OFR on Financial Stability Risks in Its 2018 Annual Report to Congress

    November 15, 2018

    OFR released its 2018 Annual Report to Congress, which examines risks to the financial stability in the United States. The report states that risks to the U.S. financial stability remain in the medium range, reflecting a mix of high, moderate, and low risks to the financial system.

    The report assesses the state of the U.S. financial system, including an analysis of potential emerging threats to the financial stability of the United States, key findings from the OFR research and analysis, and the status of the efforts of OFR in meeting its statutory obligations and fulfilling its mission. The report fulfills the statutory requirement of OFR to assess potential threats to the stability of the U.S. financial system, describe key OFR findings, and discuss the status of the efforts of the OFR in meeting its mission. The report also includes the following

    • A spotlight on financial markets
    • A discussion of OFR data initiatives
    • Information about the initiative to refocus the OFR mission on primarily supporting the Financial Stability Oversight Council and its member agencies
    • Updates on the work of OFR to improve financial data standards, including by advancing the Legal Entity Identifier (LEI), a data standard similar to a bar code that identifies parties to financial transactions

    The assessment concludes that macroeconomic risks remain moderate, market risks remain high, and contagion and credit risks are moderate while solvency and leverage risks remain low under most conditions. Non-financial corporate credit growth is robust, credit quality shows signs of weakening, and credit risk is rising with growth in leveraged lending. However, consumer credit remains a lesser concern. Additionally, solvency and leverage risks remain low under most conditions. Large banks and insurers hold capital well above regulatory minimum requirements, but a few U.S. global systemically important banks could fall below those minimums under severely adverse conditions. Funding and liquidity conditions are generally good and continue to support corporate borrowing. For large banks, funding and liquidity risks appear low. Market liquidity risks also appear low, but can change rapidly. The assessment also highlights that cybersecurity remains a key risk. Digital assets, commonly known as cryptocurrencies, are not a concern at this point, but are worth monitoring because their use is rapidly growing and evolving.

     

    Related Links

    Keywords: Americas, US, Banking, Insurance, Financial Stability, Credit Risk, Market Risk, Liquidity Risk, OFR

    Related Articles
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    News

    EBA Publishes Report on Asset Encumbrance of Banks in EU

    EBA published the annual report on asset encumbrance of banks in EU.

    January 18, 2021 WebPage Regulatory News
    News

    MAS Revises Guidelines on Technology Risk Management

    MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.

    January 18, 2021 WebPage Regulatory News
    News

    US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C

    FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.

    January 15, 2021 WebPage Regulatory News
    News

    EBA Proposes Guidelines for Establishing Intermediate Parent Entities

    EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.

    January 15, 2021 WebPage Regulatory News
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6462