The Office of Financial Research released its first annual report to Congress, a 150-page document that covers its progress on four goals:
Analyzing Threats to Financial Stability: an analysis of the six basic functions of the financial system—credit allocation and leverage, maturity transformation, risk transfer, price discovery, liquidity provision, and facilitation of payments—and an assessment of how threats may disrupt their functioning.
Conducting Research on Financial Stability: an analysis of three specific priority areas identified in Dodd-Frank: To develop metrics for measuring risks to financial stability; to evaluate stress tests that can aid in financial stability analysis; and to promote best practices in financial institution risk management.
Addressing Data Gaps: a description of how the OFR is working to identify and address data needs and data gaps among regulators and to define best practices that can be leveraged across FSOC member agencies.
Promoting Data Standards: an outline of the OFR’s goals for data standards
include the need for data integrity and quality control, data security, datasharing protocols, and data management.
Read the full report.