To the extent that the global growth in the insurance sector is partly served by an expansion in the international activities of European insurance firms, the scope for scale economies and diversification need to be balanced by appropriate management of some key risk factors.
The Federal Reserve will expect to see an appropriate level of preparedness at the banks we supervise, and that level must increase as the end of 2021 grows closer. Our supervisory approach will continue to be tailored to the size of institution and the complexity of LIBOR exposure, but the largest firms should be prepared to see our expectations for them increase.