Therefore, another critical aspect of our system of risk-focused supervision is the bank examiners’ assessment and evaluation of a bank’s internal controls and internal audit function. The application of risk-focused supervision in the United States is supported by a strong culture of market discipline.
First, tensions in energy markets could persist for longer than assumed in the forecasts. Second, the still high commodity prices could be passed on to consumers to a greater extent. And third, wages could rise more strongly than expected, partly in response to inflation surprises.