Identifying and addressing cyclical forms of systemic risk Turning next to cyclical forms of systemic risk, we are working to develop good measures of such risks, to monitor them on an ongoing basis, and to be aware of how they could unwind in a destabilizing way.
On that score, at the Federal Reserve, we regularly monitor measures of leverage and maturity mismatch at financial intermediaries, and we look at asset valuations, underwriting standards for loans, and credit growth for signs of a credit-induced buildup of systemic risk. We also monitor various systemic risk measures for the largest banking firms.