Fed Proposes large bank risk management guidance

The Federal Reserve Board has requested comment on proposed guidance that would clarify the Board's supervisory expectations related to risk management for large financial institutions. The guidance is part of a broader initiative to develop a new rating system for large financial institutions that will align with the post-crisis supervisory program. In August 2017, the Board invited comment on the proposed rating system, which would reflect assessments of a firm's capital, liquidity, and governance and controls and also issued a proposal identifying attributes of effective boards of directors. The supervisory expectations described in the proposed guidance, as well as those for boards of directors, would help inform the Federal Reserve's overall supervisory evaluation of a firm's governance and controls. Comments must be received by March 15, 2018. [Published at 83 FR 1351 on 1/11/2018.]