OFR_2016_Financial-Stability-Report
OFR_2016_Financial-Stability-Report
OFR_2016_Financial-Stability-Report
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Distress Insurance<br />
Premium<br />
Dodd-Frank Act<br />
Duration Risk<br />
Emerging Markets<br />
Eurozone<br />
Exchange-Traded Fund<br />
(ETF)<br />
Federal <strong>Financial</strong><br />
Institutions Examination<br />
Council (FFIEC)<br />
<strong>Financial</strong> Contagion<br />
<strong>Financial</strong> <strong>Stability</strong><br />
Oversight Council (FSOC)<br />
<strong>Financial</strong> <strong>Stability</strong> Board<br />
(FSB)<br />
A systemic risk indicator that measures the hypothetical contribution a financial<br />
institution would make to an insurance premium that would protect the whole<br />
financial system from distress.<br />
Short name for the Dodd-Frank Wall Street Reform and Consumer Protection Act<br />
of 2010, the most comprehensive financial reform legislation in the United States<br />
since the Great Depression. The Dodd-Frank Act seeks to promote financial stability<br />
by improving accountability in the financial system, adding transparency about<br />
over-the-counter (OTC) derivatives markets, and protecting consumers from abusive<br />
financial services practices.<br />
The risk associated with the sensitivity of the prices of bonds and other fixed-income<br />
securities to changes in the level of interest rates.<br />
Developing countries where investments are often associated with both higher<br />
returns and higher risk. Emerging market countries fall between developed markets<br />
such as the United States and more speculative frontier markets.<br />
A group of 19 European Union countries that have adopted the euro as their<br />
currency.<br />
An investment fund whose shares are traded on an exchange. Because ETFs are<br />
exchange-traded products, their shares are continuously priced, unlike mutual funds,<br />
which offer only end-of-day pricing. ETFs are often designed to track an index or a<br />
portfolio of assets.<br />
An interagency body that prescribes uniform principles, standards, and report forms<br />
for the federal examination of financial institutions. The FFIEC makes recommendations<br />
to promote uniformity in banking supervision. Members include the<br />
Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union<br />
Administration, Office of the Comptroller of the Currency, Consumer <strong>Financial</strong><br />
Protection Bureau, and a representative of state financial supervisors.<br />
A scenario in which financial or economic shocks initially affect only a few financial<br />
market participants and then spread to other parts of the financial system and countries<br />
in a manner similar to the transmission of an epidemic. <strong>Financial</strong> contagion can<br />
happen at both the international level and the domestic level.<br />
Created by the Dodd-Frank Act, a collaborative U.S. governmental body with a<br />
statutory mandate that creates collective accountability for identifying risks and<br />
responding to emerging threats to financial stability. Chaired by the Secretary of the<br />
U.S. Treasury, the Council consists of 10 voting members and 5 nonvoting members,<br />
including the <strong>OFR</strong> Director.<br />
An international coordinating body that monitors financial system developments on<br />
behalf of the G-20 nations. The FSB was established in 2009 and is the successor to<br />
the <strong>Financial</strong> <strong>Stability</strong> Forum.<br />
96 <strong>2016</strong> | <strong>OFR</strong> <strong>Financial</strong> <strong>Stability</strong> <strong>Report</strong>