February 27, 2020 meeting of the Financial Research Advisory Committee

The 15th meeting of the Financial Research Advisory Committee, held in the Cash Room at main Treasury, included discussions of capital adequacy and financial transparency. The next Advisory Committee meeting is expected to take place on July 16, 2020 in the Federal Reserve Bank of New York’s Maiden Lane building.

Thursday, February 27, 2020
United States Treasury Department

8:30 a.m. Continental Breakfast, Grant Room
9:00 a.m. Welcome and Introductions, Cash Room

Dino Falaschetti, Director, Office of Financial Research
Randy Kroszner, Chairman
Sarah Dahlgren

9:30 a.m. Discussion: : In the U.S. financial system of 2020, where are the most important capital adequacy issues? How should they be addressed? Cash Room

Moderators: Greg Hopper, Mickey Levy

10:30 a.m. Discussion: Where can increased transparency further financial stability? Cash Room

Moderator: Sarah Dahlgren

11:30 a.m. Administrative Session, Cash Room

(Closed to the public)

12:30 p.m. Demonstration of the OFR’s Bank Systemic Risk Monitor, Cash Room

The OFR Bank Systemic Risk Monitor (BSRM) is a collection of key measures for monitoring systemic risks posed by the largest banks. These include systemic importance scores for international and U.S. banks, the OFR’s Contagion Index, and other common measures of systemic risk.
Moderators: Marc Shultz, Ruth Leung, Gurkirat Pandher, and Bill Nichols

1:00 p.m. Introduction and Discussion of New Charges, Cash Room

  1. Clearing Members’ Management of Risks to CCP Exposures
    a. What methods and metrics are financial market participants (especially clearing members) using to analyze and manage their exposures to CCPs?
    b. Are clearing member risk management practices regarding their exposures to CCPs adequate, including the risks arising from membership in multiple CCPs?
  2. Nonbank Mortgage Servicing and Origination
    a. What potential vulnerabilities are associated with the increasing share of nonbanks originating and servicing mortgages?
    b. To what extent could distress among nonbank mortgage companies transmit risk to the financial system?

2:00 p.m. Adjournment