Consistent with this recommendation, and in preparation for possible changes in the regulatory framework, the Federal Reserve is expanding its already-extensive commitment to the collection and analysis of financial data. For example, efforts are under way to construct better measures of counterparty credit risk and interconnectedness among systemically critical firms.
In particular, to better identify potential channels of financial contagion, supervisors are working to improve their understanding of banks’ largest exposures to other banks, nonbank financial institutions, and corporate borrowers. We are also collecting data on banks’ trading and securitization exposures, as well as their liquidity risks, as part of an internationally coordinated effort to improve regulatory standards in these areas.