Since the Federal Housing Finance Agency launched a credit risk transfer program for GSEs Fannie Mae and Freddie Mac in 2013, the enterprises have transferred $102 billion in credit risk to private investors, amounting to about 3.3% of $3.1 trillion in unpaid principal balance, the FHFA said today. For the first half of 2019, the GSEs transferred about $10.5 billion worth of credit risk. Transfers included debt issuances, insurance and reinsurance transactions, senior-subordinate securitizations and several kinds of lender-collateralized recourse transactions.
Browsing: Risk management
In remarks at a Federal Reserve Bank of San Francisco event today, Fed Governor Lael Brainard discussed the potential implications that climate change could have for financial stability, and the importance of properly pricing in climate change-related risk.
Conduct issues have driven some of the most significant enforcement actions, including those affecting the reputation of the industry, both in the United States and around the world. As regulators and bankers take a close look at conduct risk, the ABA Banking Journal Podcast welcomes the global head of conduct risk at Credit Suisse.
Testifying before the House Financial Services Committee’s Task Force on Artificial Intelligence today, ABA SVP Paul Benda highlighted the ways banks are using cloud technology and urged greater collaboration to enhance cloud security and efficiency.
In a Federal Reserve survey released today, senior financial officers from 80 U.S. banks and U.S. branches of foreign banks reported that their lowest comfortable level of reserve balances was slightly over $652 billion, down slightly from a survey earlier this year.
Tips for ensuring cybersecurity vendor due diligence at your bank.
As banks prepare to implement the current expected credit loss accounting standard, the financial regulatory agencies have issued a proposed interagency policy statement on allowances for credit losses and proposed interagency guidance on credit risk review systems.
The federal banking regulators’ standardized approach for counterparty credit risk proposal, or SA-CCR, could have unintended consequences for commercial end users—such as corn producers or beverage manufacturers—who rely heavily on financial derivatives.