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.
Federal Reserve Approves Final Rule Requiring Systemically Important U.S Bank Holding Companies to Further Strengthen Their Capital Positions
On March 11, 2015, the Federal Reserve announced the results of the annual Comprehensive Capital Analysis and Review (CCAR). In its fifth year, CCAR evaluates the capital planning processes and capital adequacy of the largest U.S.-based bank holding companies. When considering an institution's capital plan, the Federal Reserve considers both quantitative and qualitative factors. These include, respectively, a firm's projected capital ratios under a hypothetical scenario of severe economic and financial market stress and the strength of the firm's capital planning processes.
Current Risk Topics
- Commercial Real Estate
- Commercial and Industrial Lending
- Chicago’s Debt Downgrade
- Cyber Insurance
- U.S. Migrates to EMV Chip Card and Prepares for October 1, 2015 Counterfeit Card Liability Shift
This edition also features information about Dodd-Frank company run stress tests and a Federal Reserve report on the economic well being of households.