Fed announces new report on financial stability

Posted: Updated:

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) - The Federal Reserve said Friday it will begin issuing a new report twice a year assessing the stability of the U.S. financial system.

The Fed said the first report will be issued on Nov. 28. It will provide information on potential financial vulnerabilities tracked by the central bank such as valuations for bank loans, borrowing by businesses and households and bank funding risks.

"We learned from the financial crisis that a resilient financial system is critical for a healthy economy," said Fed board member Lael Brainard. "The publication of the Financial Stability Report will be an important step in providing the public with more information about the board's assessment of financial stability."

The Fed said the new stability reports would be issued every spring and fall.

After the financial crisis, Fed officials decided bank regulators had done a poor job in monitoring financial market threats and the central bank created a new division to focus on these threats.

Randal Quarles, the Fed's vice chairman for supervision, said in a speech Friday that the central bank is currently reviewing possible changes to the annual stress tests it performs on the country's largest banks. The Fed began conducting the tests in the wake of the 2008 crisis.

"Our stress testing regime - like the banking and financial system that it evaluates - will and should evolve as we continue to learn from experience in the management of this tool."

Quarles will testify before House and Senate committees next week discussing the central bank's supervision activities this year.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."