The Federal Reserve System has established a banking risk framework that consists of six risk factors: credit, market, operational, liquidity, legal and reputational risks. During examinations, institutions' risk management structures are reviewed using these risk categories.
The Federal Reserve Bank of Chicago's supervision group follows current and emerging risk trends on an on-going basis. This Risk Perspectives newsletter is designed to highlight a few current risk topics and some potential risk topics on the horizon for the Seventh District and its supervised financial institutions. The newsletter is not intended as an exhaustive list of the current or potential risk topics and should not be relied upon as such. We encourage each of our supervised financial institutions to remain informed about current and potential risks to their institutions.
Proposal to Modify Regulations for Capital Planning and Stress Testing
On June 12, 2014, the Federal Reserve Board released a proposal to modify the regulations for capital planning and stress testing that would shift the start date of the capital plan and stress test cycles from October 1 of a given calendar year to January 1 of the following calendar year. Under the proposed rule, a bank holding company with total consolidated assets of $50 bilion or more would be required to submit its capital plan and stress test results to the Federal Reserve by April 5, three months later than under the current rulemakings.
Current Risk Topics
- District Bank Performance — Core Earnings Weaken
- Cybersecurity Update
- Challenges with Providing Banking Services to Marijuana-Related Businesses
This edition also features information about the Dodd-Frank Act. Read more...