Equipping financial regulators with the tools necessary to monitor systemic risk by Daniel K Tarullo
02/12/2010 BISDaniel K. Tarullo first reviewed the data collection and analysed
activities of the Federal Reserve that are relevant to systemic
risk monitoring. He also explained why the FED believes additional
data should be collected by regulatory authorities with
responsibility for financial stability.
Next he set forth some principles that FED believes should guide efforts to achieve the two goals he had just noted:
(1) to ensure that supervisory agencies have access to high-quality and timely data that are organized and standardized so as to enhance their regulatory missions,
and (2) to make such data available in appropriately usable form to other government agencies and private analysts so that they can conduct their own analyses and raise their own concerns aboutfinancial trends and developments..
Finally, Mr Tarullo described current impediments to these goalsand suggest some factors for the Congress to consider as it evaluates potential legislation to improve the monitoring and containment of systemic risk.
Read the full testimony(9 pages .pdf).
Next he set forth some principles that FED believes should guide efforts to achieve the two goals he had just noted:
(1) to ensure that supervisory agencies have access to high-quality and timely data that are organized and standardized so as to enhance their regulatory missions,
and (2) to make such data available in appropriately usable form to other government agencies and private analysts so that they can conduct their own analyses and raise their own concerns aboutfinancial trends and developments..
Finally, Mr Tarullo described current impediments to these goalsand suggest some factors for the Congress to consider as it evaluates potential legislation to improve the monitoring and containment of systemic risk.
Read the full testimony(9 pages .pdf).