US Federal Reserve seeks to clarify big bank risk management expectations

The Federal Reserve proposed new guidance that would clarify the regulator’s expectations for how senior managers at large banks handle risk at their respective institutions.

The proposed guidance would identify core principles for effective day-to-day management of a bank, ensuring risk is adequately managed. The Fed also proposed guidance outlining its expectations for how banks manage their various business lines in terms of risk.

The proposals are part of a broader effort at the Fed to overhaul its confidential internal large bank rating system. Thursday’s proposals are part of the effort to modernize that system, known as CAMELs, to reflect the host of new rules established by the Fed in recent years.

Re-disseminated by The Asian Banker from Reuters

Diary of Activities
Malaysia Innovation Tour
19 - 22 March 2018 | Malaysia
Digital Finance 2018
22 March 2018 | Malaysia
The Future of Finance, West Africa
18 April 2018 | Nigeria
The Future of Finance, Middle East & Africa
25 - 26 April 2018 | UAE