The LIFI area is currently is responsible for roughly the top 23 foreign firms based here in New York with the largest U.S. presence (outside of the four firms that are covered in our Complex Financial Institutions portfolio); and, the RCFI unit is responsible for the remaining large group of smaller foreign firms. Our rationale for making this change was three-fold: First, we wanted to better tailor our supervisory approaches to the firms in each of these portfolios. •  In this regard, the LIFI portfolio approach will use a combination of on-site and offsite monitoring over the course of the year, as well as examinations – but the program will evolve over time as the rules are finalized for applying enhanced prudential standards for FBOs. •  The RCFI approach will largely be point-in-time examinations, using, where possible, a more streamlined process, more off-site analysis, and continued coordination with our colleagues at the other supervisory agencies. Second, we wanted to leverage the portfolio approach to ensure better dialogue with supervised firms, as well as to develop better cross-firm metrics and benchmarks that we can use to evaluate firms and to provide more robust feedback on key issues. 6  BIS central bankers’ speeches  And, third, it provides an opportunity to realize efficiencies across our supervisory activities, with similarly sized (and similar complexity) organizations examined by a common core of examiners; this also gives us more targeted training and development for our staff.
Conclusion I think I’ve covered a lot of ground in my remarks this morning. I look forward to continuing our dialogue in the coming year – and appreciate the opportunity to talk with you this morning. Thank you. BIS central bankers’ speeches  7