Published: November 15, 2018
This 2018 Annual Report to Congress states that risks to U.S. financial stability remain in the medium range, reflecting a mix of high, moderate, and low risks in the financial system. Market risk is highest, reflected in historically high stock prices and the sensitivity of bond prices to changes in interest rates. Credit risk is moderate, with risk rising from leveraged lending (lending to companies with lower credit ratings), tempered somewhat by risks from consumer credit.
The report fulfills the OFR’s statutory requirement to assess potential threats to the stability of the U.S. financial system, describe key OFR findings, and discuss the status of the efforts of the OFR in meeting its mission. The report also includes a spotlight on financial markets, a discussion of OFR data initiatives, and information about the initiative to refocus the OFR mission on primarily supporting the Financial Stability Oversight Council and its member agencies.