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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 19, 2018

Washington – The Financial Stability Oversight Council (Council) today published its 2018
annual report. The Council’s annual reports describe significant financial market and regulatory
developments, potential emerging threats to U.S. financial stability, recommendations to
promote U.S. financial stability, and the activities of the Council, among other things.
“The Council’s report represents the collective view of U.S. financial regulators on how to
promote financial stability and mitigate systemic risk that would negatively a ect the economy,”
said Treasury Secretary Steven T. Mnuchin. “The Council remains focused on risks to financial
stability.”
Recommendations in the annual report include:
As part of broader e orts to address threats to cybersecurity, the Council supports e orts to
ensure agencies have the authorities necessary to supervise and enhance third-party
service provider information security.
To complete the transition to a new alternative reference rate, the Council recommends that
member agencies work closely with market participants to identify and mitigate risks from
potential dislocations during the transition process.
Amid a prolonged credit expansion, the Council recommends that agencies continue to
monitor levels of nonfinancial business leverage, trends in asset valuations, and potential
implications for the entities they regulate in order to assess and reinforce their ability to
manage severe, simultaneous losses in those markets.
The Council recommends that federal and state financial regulators continue to work
together to evaluate regulatory overlap and duplication, modernize outdated regulations,
and, where authority exists, tailor regulations based on the size and complexity of financial
institutions.
View the full report

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https://home.treasury.gov/news/press-releases/sm578

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

https://home.treasury.gov/news/press-releases/sm578

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