While credit performance has been very strong lately, and banks of all sizes survived the 2001 recession with only a slight decline in credit quality, banking supervisors have become concerned recently about apparent increased risk-taking in both commercial and residential real estate lending.
Fourth, given the role of CCP participants in absorbing at least the vast majority of default-related losses in central clearing, it may be appropriate to enhance their involvement in key CCP risk management decisions as well as improving transparency on CCPs’ key risk mitigants.