OFR_2016_Financial-Stability-Report
OFR_2016_Financial-Stability-Report
OFR_2016_Financial-Stability-Report
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Liquidity Risk<br />
Liquidity Transformation<br />
Living Wills<br />
Macroeconomic Risk<br />
Macroprudential<br />
Supervision<br />
Margin Call<br />
Margin Requirement<br />
Market Liquidity<br />
Market Risk<br />
Market-Making<br />
Maturity Transformation<br />
Metadata<br />
Metadata Catalog<br />
Microprudential<br />
Supervision<br />
Money Market Fund<br />
The risk that a firm will not be able to meet its current and future cash flow and collateral<br />
needs, expected and unexpected, without materially affecting its daily operations<br />
or overall financial condition.<br />
Funding illiquid assets with liquid and demandable liabilities.<br />
Annual resolution plans required of U.S. banks with $50 billion or more in total<br />
consolidated assets and nonbank financial companies designated by the <strong>Financial</strong><br />
<strong>Stability</strong> Oversight Council for supervision by the Federal Reserve. Each living will<br />
must describe how the company could be dismantled in a rapid, orderly way in the<br />
event of failure.<br />
Risk from changes in the economy or macroeconomic policy.<br />
Supervision to promote the stability of the financial system as a whole (see<br />
Microprudential Supervision).<br />
A requirement by a broker that a borrower increase the collateral pledged against a<br />
loan in response to changes in the collateral’s value.<br />
Rules governing the necessary collateral for a derivative, loan, or related security<br />
required to cover, in whole or in part, the credit risk one party poses to another.<br />
The ability of market participants to sell large positions with limited price impact<br />
and low transaction costs.<br />
The risk that an asset’s value will change due to unanticipated movements in market<br />
prices.<br />
The process in which an individual or firm stands ready to buy and sell a particular<br />
stock, security, or other asset on a regular and continuous basis at a publicly quoted<br />
price. Market-makers usually hold inventories of the securities in which they make<br />
markets. Market-making helps to keep financial markets efficient.<br />
Funding long-term assets with short-term liabilities; this practice creates a maturity<br />
mismatch that can pose risks when short-term funding markets are constrained.<br />
Data about data; metadata include information about the structure, format, or organization<br />
of other data.<br />
An organized way to present metadata for discovery, exploration, and use of the<br />
related data.<br />
Supervision of the activities of a bank, financial firm, or other components of a<br />
financial system (see Macroprudential Supervision).<br />
A fund that typically invests in government securities, certificates of deposit, commercial<br />
paper, or other highly liquid and low-risk securities.<br />
Glossary 99