Bernanke Discusses Fed's Increasing Role in Systemic Stability
At the Federal Reserve Bank of Atlanta's 2012 Financial Markets Conference at Stone Mountain, Ga., Fed Chairman Ben Bernanke recently spoke about the Fed's moves to reorient itself toward being an agency with a broader supervisory focus on systemic financial stability.
Financial stability gains emphasis
Within the realm of bank regulation, the Fed is also taking a broader approach. The shift began before the enactment of the Dodd-Frank Act, Bernanke pointed out. He noted that the Fed in 2009 established the Large Institution Supervision Coordinating Committee, a high-level group that draws on varied skills and experience from throughout the Federal Reserve System. That group is charged with overseeing the supervision of the most systemically important financial firms.
Macroprudential analysis informs regulatory perspective
This work on the European crisis has deepened the Fed's understanding of both individual banks' risk profiles and the potential effect the European situation could have on credit flows and economic activity in the United States.
"Continuing to develop an effective set of macroprudential policy indicators and tools, while pursuing essential reforms to the financial system, is critical to preserving financial stability and supporting the U.S. economy," Bernanke said.
April 23, 2012