BIS Review 24/1998  -2-  The Federal Reserve has undertaken its new risk-focused examination approach to respond to the dramatic changes that are occurring in the banking and financial services business, including tremendous advancement in technology and securitization, the breakdown of traditional product lines, the expansion of banks’ global operations in the world’s financial markets, and the development of new risk management systems.
Furthermore, developments in technology and financial products, combined with the increased depth and liquidity of domestic and global financial markets, have enabled banks to change their risk profiles faster than ever before.