US Federal Deposit Insurance Corporation Chairman and US Comptroller of the Currency Delivers Remarks to US House of Representatives Financial Services Committee Discussing Recent Developments by the US Financial Stability Oversight Council in Addressing Systemic Risk

The Chairman of the FDIC, Martin J. Gruenberg and the Comptroller of the Currency, Thomas J. Curry, testified before the Committee on Financial Services in the US House of Representatives on the progress achieved by the US Financial Stability Oversight Council in fulfilling its mandate. Both Chairman Gruenberg and Comptroller Curry discussed the actions taken by the FSOC toward (i) identifying risks to financial stability arising from entities designated as systemically important financial institutions; and (ii) identifying and addressing systemic risk in the US financial system. On the issue of SIFI designation, both Chairman Gruenberg and Comptroller Curry noted the final rule and guidance issued by the FSOC, setting forth the formal process used by the FSOC in making such a determination. Comptroller Curry noted further the final rule and interpretive guidance issued by the FSOC for identifying and designating systemically important financial market utilities. 

On the issue of identifying and addressing systemic risk, Chairman Gruenberg pointed to the FSOC Annual Reports, which provides the basis for analysis of potential emerging risks to US financial stability. Chairman Gruenberg discussed specific risks identified in the FSOC Annual Reports, including (i) potential interest rate risk which could result in problems related to maturity mismatch, (ii) increase in credit risk due to easing of lending standards and other forms of increased risk taking and (iii) the increase in emerging threats and vulnerabilities due to cybersecurity breaches.

View the full text of Chairman Gruenberg’s testimony.

View the full text of Comptroller Curry’s written testimony.