U.S. Financial Stability – Risks Still In The Medium Range by OFR

This monitor displays a snapshot of weaknesses in the financial system based on five functional areas of risk: macroeconomic, market, credit, funding and liquidity, and contagion. The monitor is not designed to predict the timing or severity of a financial crisis but to identify underlying vulnerabilities that may predispose the system to a crisis.

The monitor is organized as a heat map. The closer an indicator is to the red end of the spectrum, the more elevated the risks relative to the range of that series. The closer an indicator is to the green end of the spectrum, the less elevated the measured risks. A set of about 60 risk indicators underlie the five major risk categories and subcategories.

Financial Stability Monitor

Financial Stability Monitor

Financial Stability Monitor

Financial Stability Monitor

Financial Stability Monitor

Financial Stability Monitor

Interpreting the Monitor

The Financial Stability Monitor is just one tool policymakers can use to monitor the health of the financial system. It should be accompanied by rigorous and robust quantitative assessments, such as stress tests and macroprudential surveillance. The monitor will continue to evolve as the OFR tests its performance and evaluates new indicators, data, and statistical tools. The OFR will release updates of the monitor every six months to illustrate the changes in risks and vulnerabilities of the financial system.

Composition of the Monitor

The composition of the Financial Stability Monitor cuts across different geographies, sectors, and measurement methods.

Data Source for all charts: OFR analysis.

Financial Stability Monitor

Financial Stability Monitor

See the full report below.