Published: December 11, 2019
This 2019 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. Solvency and leverage risk continues to be low. Most other types of risk to financial stability are moderate. Of those moderate risks, macroeconomic risk is higher than a year ago. Credit risk is still moderate. Market risk remains elevated. Asset prices have appreciated with the strong U.S. economy. High asset prices can be a plus, but as past crises have shown, can also be vulnerable to declines.
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 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.