Supervisory Policy and Guidance Topics
Market Risk Management
- The sensitivity of the financial institution's earnings or the economic value of its capital to adverse changes in interest rates, foreign exchanges rates, commodity prices, or equity prices.
- The ability of management to identify, measure, monitor, and control exposure to market risk given the institution's size, complexity, and risk profile.
- The nature and complexity of interest rate risk exposure arising from nontrading positions.
- Where appropriate, the nature and complexity of market risk exposure arising from trading and foreign operations.
This topic also provides specific guidance on interest-rate risk, which is the exposure of a bank's current and future earnings and capital arising from adverse movements in interest rates, and the market risk capital rule, which establishes regulatory capital requirements for bank holding companies and state member banks with significant exposure to certain market risks.
- SR 11-7
- Guidance on Model Risk Management
- SR 09-1
- Application of the Market Risk Rule in Bank Holding Companies and State Member Banks
- SR 07-11
- The Fair Value Option and the Applicability of the Market Risk Capital Rule
- SR 04-1
- Interagency Policy on Banks/Thrifts Providing Financial Support to Funds Advised by the Banking Organization
- SR 03-4
- Risk Management and Valuation of Mortgage Servicing Assets Arising from Mortgage Banking Activities
- SR 01-8 (SUP)
- Supervisory Guidance on Complex Wholesale Borrowings
- SR 99-37 (SUP)
- Risk Management and Valuation of Retained Interests Arising from Securitization Activities
- SR 97-4 (SUP)
- Interagency Guidance on Common Questions About the Application of the Revised CAMELS Rating System
- SR 96-38 (SUP)
- Uniform Financial Institutions Rating System
- SR 95-51 (SUP)
- Rating the Adequacy of Risk Management Processes and Internal Controls at State Member Banks and Bank Holding Companies
Interest Rate Risk
- SR 12-2
- Questions and Answers on Interagency Advisory on Interest Rate Risk Management
- SR 10-1
- Interagency Advisory on Interest Rate Risk
- SR 01-14 (SUP)
- Joint Agency Advisory on Rate-Sensitive Deposits
- SR 96-13 (SUP)
- Joint Policy Statement on Interest Rate Risk
Private Equity and Merchant Banking
- SR 09-4
- Applying Supervisory Guidance and Regulations on the Payment of Dividends, Stock Redemptions, and Stock Repurchases at Bank Holding Companies
- SR 02-4
- Final Capital Rules for Nonfinancial Equity Investments
- SR 01-27
- The Use of Forward Equity Transactions by Banking Organizations
- SR 00-9 (SPE)
- Supervisory Guidance on Equity Investment and Merchant Banking Activities
- SR 11-10
- Interagency Counterparty Credit Risk Management Guidance
- SR 01-13 (SUP)
- Supervisory guidance relating to a change to permissible securities activities of state member banks
- SR 00-13 (SUP)
- Framework for Financial Holding Company Supervision
- SR 99-18 (SUP)
- Assessing Capital Adequacy in Relation to Risk at Large Banking Organizations and Others with Complex Risk Profiles
- SR 98-25 (SUP)
- Sound Credit Risk Management and the Use of Internal Credit Risk Ratings at Large Banking Organizations
- SR 98-12 (SUP)
- FFIEC Policy Statement on Investment Securities and End-User Derivatives Activities
- SR 97-18 (GEN)
- Application of Market Risk Capital Requirements to Credit Derivatives
- SR 97-2 (SPE)
- Section 20 Subsidiaries - Additional Clarification of Revenue Test Treatment of Interest Income
- SR 93-69 (FIS)
- Examining Risk Management and Internal Controls for Trading Activities of Banking Organizations
- SR 90-8
- Inspection Procedures for "Section 20 Subsidiaries"
- Market Risk-Related Materials Under the Basel Framework
- Regulation H (Appendix E): Capital Adequacy Guidelines for State Member Banks; Market Risk Measure
- Regulation R: Exceptions for Banks from the Definition of Broker in the Securities Exchange Act of 1934
- Regulation Y (Appendix E): Capital Adequacy Guidelines for Bank Holding Companies: Market Risk Measure
Bank Holding Company Supervision Manual
- Section 2126.0, "Model Risk Management"
- Section 2126.1, "Investment Securities and End-User Derivatives Activities"
- Section 2126.3, "Risk-Focused Supervision (Counterparty Credit Risk Management Systems)"
- Section 2127.0, "Interest-Rate Risk (Risk Management and Internal Controls)"
- Section 4060.3, "Consolidated Capital (Examiners’ Guidelines for Assessing the Capital Adequacy of BHCs)"
Commercial Bank Examination Manual
- Section 2020.1, "Investment Securities and End-User Activities"
- Section 4027.1, "Model Risk Management"
- Section 4090.1, "Interest-Rate Risk Management"
- Section 7100.1, "International-Foreign Exchange"
- Section A.5020.1, "Condition of the Bank: Uniform Financial Institutions Rating System"
Trading and Capital-Markets Activities Manual
- Section 2010.1, "Market Risk"
- Section 3010.1, "Interest Rate Risk Management"
- Section 3040.1, "Equity Investment and Merchant Banking Activities"