Risk Perspectives: Highlights of Risk Monitoring in the Seventh District
The Federal Reserve Bank of Chicago's supervision group follows current and emerging risk trends on an ongoing basis. This Risk Perspectives newsletter is designed to highlight a few current risk topics and some potential risk topics on the horizon for the Seventh District and its supervised financial institutions. The newsletter is not intended as an exhaustive list of the current or potential risk topics and should not be relied upon as such. We encourage each of our supervised financial institutions to remain informed about current and potential risks to its institution.
Current Risk Topics
- District Bank Performance Overview: With few exceptions, District bank aggregate loan balances have risen across most categories over the past year, marking continued improvements in loan demand.
- Credit Risk Update: Retail, commercial real estate, commercial and industrial and agricultural lending reviewed.
- Classifying Investment Securities: Credit rating agencies were viewed by some to play a key role in the financial crisis due to their role with sub-prime mortgage backed securities.
- Vendor Risk Management: Federal Reserve guidance describes risks from the use of service providers; board of directors and senior management responsibilities; and service provider risk management programs.
This edition also features information about the Volcker Rule and enhanced prudentioal standards of the Dodd-Frank Act.