From time to time, staff members of the Board and the Reserve Banks will undertake a study of a particular banking activity or an issue of importance to the banking industry for a better understanding of industry practices and potential supervisory and regulatory implications. The conclusions set forth in the reports are those of the authors and do not necessarily reflect the views of the Board of Governors or the Division of Banking Supervision and Regulation.

December 2013
CCAR and Stress Testing as Complementary Supervisory Tools
This report discusses the evolution of stress testing and related supervisory capital assessment programs, key features of supervisory stress tests, how supervisors assess bank holding company (BHC) stress tests and capital planning, and the role of public disclosure.

December 2013
Banks' Governance and Controls over Internal Capital Adequacy Processes
This report discusses the key elements of the governance over a capital adequacy process (CAP). The topics discussed include: strong board and senior management oversight; evaluation of capital goals; assessment of the appropriateness of stress scenarios considered; regular review of any limitations and uncertainties in all aspects of the CAP; and approval of capital decisions.

December 2013
Determining the Severity of Macroeconomic Stress Scenarios
This report discusses the severity of the supervisory adverse scenarios and provides a simple methodology to compare the severity of different adverse macroeconomic scenarios.

April 2013
An Analysis of the Impact of the Commercial Real Estate Concentration Guidance | PDF
This paper analyzes aspects of the interagency guidance issued in 2006, titled "Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices." The recent financial crisis and recession provide an opportunity to consider the relationship between the guidance and banks’ commercial real estate concentrations and performance during the downturn.

July 2005
A Comparison of the Insurance and Banking Regulatory Frameworks for Identifying and Supervising Companies in Weakened Financial Condition
Developed by the National Association of Insurance Commissioners (NAIC)/Federal Reserve System (FRS) Joint Troubled Company Subgroup, the paper describes and compares the state insurance and FRS banking supervisory frameworks for identifying and supervising companies in weakened financial condition. The paper was undertaken to foster effective communication and coordination between the state insurance departments and the FRS, consistent with the Gramm-Leach-Bliley Act.
Complete report (PDF)

February 2002
Continuity of Operations for the Financial Services Industry: Discussion of Lessons Learned from Events of September 11
Discussion note and meeting summary prepared by the staffs of the Federal Reserve, the New York State Banking Department, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission. On February 26, 2002, a cross section of representatives of the financial services industry met at the Federal Reserve Bank of New York to discuss ways to strengthen the capacity of the financial system to withstand disasters. The agencies, which sponsored the event, circulated a discussion note to the attendees in advance of the meeting as background information and later prepared a summary of the meeting.
Discussion note (PDF) | Meeting summary (PDF)

November 1998
Common Practices for Country Risk Management in U.S. Banks
Prepared by the Interagency Country Exposure Review Committee, Country Risk Management Sub-Group. Developed jointly by staff members of the FDIC, the Federal Reserve, and the OCC, the study describes the wide variety of approaches currently used by banks to measure, monitor, and control the risk associated with their foreign exposures.
SR Letter 98-33 | Complete report (PDF)

November 1998
Credit Risk Rating at Large U.S. Banks 
Prepared by William F. Treacy, of the Board's Division of Banking Supervision and Regulation, and Mark S. Carey, of the Board's Division of Research and Statistics, and published in the Federal Reserve Bulletin, November 1998. The article describes variations in the design and use of rating systems at large banks and discusses the conceptual and practical difficulties faced by banks in achieving accurate and consistent ratings.
Complete article (PDF)

June 1998
The Significance of Recent Changes in Bank Lending Standards: Evidence from the Loan Quality Assessment Project
Prepared by William F. Treacy, of the Board's Division of Supervision and Regulation, with contributions by Reserve Bank staff members John Greco (New York), Kenneth Krynicki (Chicago), and John Robins (Cleveland). The study assesses the extent and supervisory significance of the reported easing of bank lending terms and standards between the second half of 1995 and the second half of 1997.
SR Letter 98-18 (with link to report) | Complete report (PDF)

May 1998
Credit Risk Models at Major U.S. Banking Institutions: Current State of the Art and Implications for Assessments of Capital Adequacy
Prepared by the System Task Force on Internal Credit Risk Models. The report describes current uses of internal models by major U.S. banking organizations and outlines possible uses of the models for assessing bank capital adequacy. 
Executive summary (PDF) | Complete report (PDF)

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Last Update: December 20, 2013