WASHINGTON (Reuters) - The Federal Reserve proposed new guidance Thursday that would clarify the regulator’s expectations for how senior managers at large banks handle risk at their respective institutions.
The proposed guidance would identify core principles for effective day-to-day management of a bank, ensuring risk is adequately managed. The Fed also proposed guidance outlining its expectations for how banks manage their various business lines in terms of risk.
The proposals are part of a broader effort at the Fed to overhaul its confidential internal large bank rating system. Thursday’s proposals are part of the effort to modernize that system, known as CAMELs, to reflect the host of new rules established by the Fed in recent years.
Reporting by Pete SchroederEditing by Chizu Nomiyama
Our Standards:The Thomson Reuters Trust Principles.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.