One answer is that it clearly improves the supervisory line-of-sight into the safety and soundness of financial firms. The more timely and accurate the information that can be aggregated by supervisors, the more responsive our supervisory and financial stability oversight can be. A well-developed set of risk and control functions also allows an effective point of entry for pursuing certain regulatory objectives.
To date, the best example of this potential is our annual supervisory stress tests and Comprehensive Capital Analysis and Review (CCAR) to which I have already referred.