Federal reserve capital markets handbook

The Federal Reserve Board employs over Ph. Board economists conduct cutting edge research, produce numerous working papers, and are among the leading contributors at professional meetings and in major journals. Our economists also produce a wide variety of economic analyses and forecasts for the Board of Governors and the Federal Open Market Committee. The Division of Research and Statistics is responsible for developing and presenting economic and financial data and analysis for the use of the Board, the Federal Open Market Committee, and other Federal Reserve System officials.

This information serves as background for the formulation and conduct of monetary, regulatory, and supervisory policies. In addition, the division fosters a broader understanding of issues relating to economic policy by providing leadership in economic and statistical research and by supplying data and analyses for public release. Includes discussions of a wide range of risk management issues encountered in trading and dealer operations, including market risk, counterparty credit risk, legal risk, financial reporting, accounting, and ethics.

Profiles thirty-five specific financial instruments commonly encountered in trading and capital-markets-related activities. Search Submit Search Button. Toggle Dropdown Menu. Search Search Submit Button Submit. Home Publications Supervision Manuals. Share RSS. Bank Holding Company Supervision Manual Last update: November Provides guidance for conducting inspections of bank holding companies and their nonbank subsidiaries.

Commercial Bank Examination Manual Last update: May Presents examination objectives and procedures that Federal Reserve System examiners follow in evaluating the safety and soundness of state member banks. Consumer Compliance Handbook Last update: December Contains examination objectives, procedures, and other instructions for planning and conducting consumer compliance and Community Reinvestment Act examinations and for preparing and distributing examination findings.

Examination Manual for U. Branches and Agencies of Foreign Banking Organizations Describes general policies and procedures to be used in conducting examinations of the U. Exchange Rates and International Data. The primary function of capital is to support the bank's operations, act as a cushion to absorb unanticipated losses and declines in asset values that could otherwise cause a bank to fail, and provide protection to uninsured depositors and debt holders in the event of liquidation.

Capital regulation is particularly important because deposit insurance and other elements of the federal safety net provide banks with an incentive to increase their leverage beyond what the market--in the absence of depositor protection--would permit.

The types and quantity of risk inherent in an institution's activities will determine the extent to which it may be necessary to maintain capital at levels above required regulatory minimums to properly reflect the potentially adverse consequences that these risks may have on the institution's capital.