Financial Stability Monitor Notes Archive

This page contains an archive of past and current notes on the OFR Financial Stability Monitor and the OFR's assessment of risks to financial stability.

Risks Still in the Medium Range, But Pushed Higher by U.K. Referendum Result

Overall risks to U.S. financial stability remain in the medium range. However, they have been pushed higher by the vote in the United Kingdom to exit the European Union. The result surprised financial markets and was a negative shock to investor confidence.

Risks to U.S. Financial Stability Remain in the Medium Range

Overall, threats to U.S. financial stability remain in the medium range, but they have edged higher within that range over the past year. Three major themes stand out: elevated and rising credit risks, the effects of persistently low interest rates, and the uneven resilience of the financial system.

Financial Stability Risks Remain Moderate

Since we last assessed threats to financial stability six months ago, market volatility has risen from historically low levels, oil prices have fallen, the U.S. dollar has strengthened, and risks in Greece and some emerging markets have increased. Overall, financial stability risks remain moderate. As depicted in our Financial Stability Monitor, macroeconomic, market, credit, funding and liquidity, and contagion risks are generally in the same moderate range as six months ago. Risk premiums are still compressed in some markets, secondary market liquidity in fixed income remains fragmented, and certain activities continue to migrate outside the banking system.