Market Risk Intensified Over The Past Year: OFR

Although overall risks to financial stability are not particularly elevated compared to the pre-crisis period, some risks, particularly market risk, have clearly intensified over the past year, according to a recent OFR report. The federal Office of Financial Research’s 2014 annual report to the Congress cautions that despite moderate threats to financial stability, the relatively benign current economic backdrop is no cause for complacency. Market risk intensified Last year OFR introduced a benchmark tool “OFR Financial Stability Monitor” to look across the financial system and spot threats wherever they arise. According to the 2014 annual report, several financial stability risks…