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3/19/2020

Financial Stability Oversight Council Releases Annual Report | U.S. Department of the Treasury

Financial Stability Oversight Council Releases Annual Report
December 14, 2017

Washington – The Financial Stability Oversight Council (Council) today published its 2017
annual report. The report describes significant financial market and regulatory developments,
potential emerging threats to U.S. financial stability, recommendations to promote financial
stability, and the activities of the Council. The report was developed collaboratively by the
members of the Council and their agencies and respective sta and was approved unanimously
by voting members of the Council.
The report notes that the U.S. financial regulatory system should promote economic growth by
preventing financial crises and also minimizing regulations that increase costs without
commensurate benefits.
"The annual report is the culmination of a productive and collaborative process among all of
FSOC's members," said Treasury Secretary Steven T. Mnuchin. "We received valuable input from
the other agencies, and I look forward to working with them on implementing the
recommendations."
Additional recommendations in the annual report include:
The Council supports the creation of a private sector council of senior executives to
collaborate with regulators and focus on the ways that cyber incidents could impact
businesses.
Financial regulators should ensure that financial institutions have su icient capital and
liquidity to reduce their vulnerability to economic and financial shocks. Additionally,
regulators should continue to monitor and assess the impact of rules on financial
institutions and markets.
Regulators should continue to evaluate whether existing rules and standards for central
counterparties and their clearing members are su iciently robust to mitigate potential
threats to financial stability.

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Financial Stability Oversight Council Releases Annual Report | U.S. Department of the Treasury

The Securities and Exchange Commission should monitor and assess the e ectiveness of
money market mutual fund reforms that were implemented last year.
Regulators and market participants should complete work on alternative reference rates,
and take appropriate steps to mitigate disruptions associated with the transition to a new
reference rate.
Regulators and market participants should continue work to improve the coverage, quality,
and accessibility of financial data, as well as data sharing between and among relevant
agencies.

View the 2017 Annual Report

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