This work will allow us to more effectively connect the firm-specific information and insights gained from traditional examinations and other supervisory activities with analysis of system wide developments and emerging stresses. Enhanced data collection is a key component of our supervisory restructuring, particularly for our increased emphasis on systemic surveillance.
We have initiated new efforts to better measure large institutions’ counterparty credit risk and interconnectedness, sensitivity to market risk, and funding and liquidity exposures. These efforts will help us focus not only on risks to individual firms, but also on concentrations of risk that may arise through common exposures or sensitivity to common shocks.