United States: Financial Sector Assessment Program-Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision

IMF Staff Country Reports, April 2, 2015

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United States: Financial Sector Assessment Program-Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision

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Bibliographic details

• Published: April 2, 2015
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781484312728.002

Summary / Key findings

• The paper discusses key findings of the Detailed Assessment of Observance of the Basel Core Principles for Effective Banking Supervision (BCP) on the United States.
• The U.S. federal banking agencies have improved considerably in effectiveness.
• These improvements are reflected in the high degree of compliance with BCP in this current assessment.
• Shortcomings have been observed, particularly in the treatment of concentration risk and large exposures.
• The shortcomings do not raise concerns overall about the authorities’ ability to undertake effective supervision.
• These shortcomings should, however, be addressed if the United States is to achieve the standards of supervisory effectiveness expected of one of the most systemically important financial systems in the world.

Regulatory effectiveness and scope

• High degree of compliance with Basel Core Principles (BCP) in the current assessment.
• Noted considerable improvements in effectiveness of U.S. federal banking agencies.
• Overall supervisory capacity is not called into question despite identified shortcomings.

Identified shortcomings and risk areas

• Concentration risk: shortcomings observed in treatment.
• Large exposures: shortcomings observed in treatment.
• No further numeric quantification of the shortcomings is provided on this page.

Thematic coverage (subjects and keywords)

• Subject: Banking, Credit, Financial regulation and supervision, Financial sector policy and analysis, Internal controls, Liquidity risk, Market risk, Money, Operational risk, Stress testing
• Keywords: banking organization, CR, Credit, Global, ISCR, Liquidity risk, Market risk, Operational risk, risk management, risk profile, savings and loan, senior management, state bank, Stress testing

Content in this bundle

• INTRODUCTION — IMF FSAP Assessment
  • INTRODUCTION — IMF FSAP Assessment (Markdown version)
  • INTRODUCTION — IMF FSAP Assessment (PDF)