As mentioned, the GFXC’s Working Group on disclosures and transparency is doing more work on this topic, and that will include thinking about whether it’s sufficiently clear how the Code’s principles are to be applied in this area. In identifying other areas of focus for the three-year review, the GFXC will gather feedback as widely as possible.
In addition, risk premiums on C&I loans have also risen. While firming loan standards and terms is one technique for managing credit risk, sound risk-management systems also involve testing the performance of borrowers under more stressful conditions to reveal weaknesses.