October 25, 2017

OFR introduced two new monitoring tools, the Financial System Vulnerabilities Monitor (FSVM) and the Financial Stress Index (FSI). FSVM and FSI, which are part of the quantitative monitoring toolkit of OFR, signal where the OFR needs to investigate potential stresses and vulnerabilities. OFR conducts such investigations using a broader set of data, qualitative information, and expert analysis.

The OFR FSI is a daily market-based snapshot of stress in global financial markets. It is constructed from 33 financial market variables, such as yield spreads, valuation measures, and interest rates. The FSI is positive when stress levels are above average and negative when stress levels are below average. The FSI incorporates five categories of indicators: credit, equity valuation, funding, safe assets, and volatility. The FSI shows stress contributions by three regions: United States, other advanced economies, and emerging markets.

The OFR FSVM is a starting point for monitoring the U.S. financial stability. It is a heat map of 58 indicators of potential vulnerabilities in the U.S. financial system, organized into six categories: macroeconomic, market, credit, solvency and leverage, funding and liquidity, and contagion. The monitor is designed to provide early warning signals of potential U.S. financial system vulnerabilities that merit investigation. It does not provide conclusions about financial stability. OFR, however, provides such conclusions in its Financial Stability Report and Annual Report. The monitor improves upon and replaces the OFR Financial Stability Monitor.

 

Related Links

Keywords: Americas, US, Monitoring Tools, FSVM, FSI, Financial Stability, OFR

Related Articles
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
News

US Agencies Delay Enforcing Volcker Rule Restrictions on Foreign Funds

US Agencies (FDIC, FED, and OCC) announced that they will not take action related to restrictions under the Volcker Rule for certain foreign funds for an additional two years.

July 17, 2019 WebPage Regulatory News
News

SRB Announces SRF Receives Cash Injection, Grows to EUR 33 billion

SRB announced that the Single Resolution Fund (SRF or the Fund) received a cash injection of EUR 7.8 billion from 3,186 institutions in 2019, bringing the total amount in the Fund to about EUR 33 billion.

July 17, 2019 WebPage Regulatory News
News

FASB to Propose to Delay CECL Compliance Deadline for Certain Entities

FASB published a summary of the tentative decisions taken at its Board meeting in July 2019.

July 17, 2019 WebPage Regulatory News
News

IMF Publishes Report on 2019 Article IV Consultation with Vietnam

IMF published its staff report in context of the 2019 Article IV consultation with Vietnam.

July 16, 2019 WebPage Regulatory News
News

European Parliament Elects Next President of European Commission

European Parliament elected Ursula von der Leyen from Germany as the first female President of the next European Commission for a five-year term from November 01, 2019.

July 16, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3476