The Basel Committee on Banking Supervision today issued a newsletter focusing on credit risk, which has risen in recent months due to inflation and the COVID-19 pandemic.
The FDIC today said that the banking environment improved in 2021 as the economy recovered from a period of economic hardship the year prior.
As high inflation and economic uncertainties persist, Acting Comptroller of the Currency Michael Hsu said that “now is the time for banks to take a fresh look at their exposures and take actions to adjust their risk positions—to ‘trim their sails,’ so to speak—ahead of potential uncertainty and volatility.”
The nation’s large banks at the core of the financial system “continue to be resilient” while some financial vulnerabilities remain elevated, the Federal Reserve said today in its semiannual monetary policy report.
The federal banking agencies found that credit risk improved modestly in 2021 but remains high in the Shared National Credit portfolio—a bundle of large, syndicated bank loans that includes 5,764 borrowers and totals $5.2 trillion—according to the SNC Review report released today.
Five key factors for risk managers and C-suites in the year ahead.
The FDIC board yesterday determined that no changes will be made to the definition of “qualified residential mortgage” and related provisions of the credit risk retention rule, as recommended by ABA and other financial trade groups.
The Federal Reserve today reminded banks of its expectations for safe and sound practices with regard to counterparty credit risk management.
In its Semiannual Risk Perspective Report, the OCC flagged operational and strategic risk as being elevated, with banks continuing to face increasingly sophisticated cyberattacks and take strategic risks to improve earnings.
The OCC today released its bank supervision operating plan for fiscal year 2022, identifying what each of the agency’s supervisory operating units will focus on for the new federal fiscal year that started Oct. 1.