So that we can better understand linkages among firms and markets that have the potential to undermine the stability of the financial system, we have adopted a more explicitly multidisciplinary approach, making use of the Federal Reserve’s broad expertise in economics, financial markets, payment systems, and bank supervision to which I alluded earlier.
We are also augmenting our traditional supervisory approach that focuses on firm-byfirm examinations with greater use of horizontal reviews that look across a group of firms to identify common sources of risks and best practices for managing those risks.