The term “operational risk” often evokes images of catastrophic events like hurricanes and earthquakes. For financial institutions, however, operational risk has a broader scope, encompassing losses related to fraud, rogue trading, product misrepresentation, computer and system failures, and cyberattacks, among other things. In this blog post, we discuss how operational risk has come into greater focus over the past two decades—to the point that it now accounts for more than a quarter of financial institutions’ regulatory capital.
The Board of Governors has published its inaugural Supervision and Regulation Report, which summarizes banking conditions and the Federal Reserve’s recent prudential supervisory and regulatory activities.
A new proposed interagency rule would expand the number of regulated institutions eligible for streamlined regulatory reporting and reduce the number of data items those institutions have to report. Insured depository institutions that hold total consolidated assets of less than $5 billion and do not engage in certain complex or international activities would be allowed to file the most streamlined version of the quarterly Call Report and would have fewer data items to report for the first and third calendar quarters. The deadline for public comment will be 60 days after publication in the Federal Register.
The National Federal Reserve Financial Services website presents the products and services available for institutions in the Fifth District.
Learn about common frauds and scams including the Counterfeit Cashier's Check.
The Supervision News Flash helps you stay abreast of topics and trends affecting institutions in the Fifth Federal Reserve District.
