Banking and Finance Sector-Specific Plan - U.S. Department of ...

system. All of the systemically critical institutions are subject to some form of Government oversight, and their resilience is a
matter of keen interest. As technology and innovation advance the operations of financial services firms, the list of systemically
critical institutions may evolve over time.
There are also institutions or groups of institutions that, while not systemically critical, play significant roles in critical financial
markets. Consequences of disruption at these organizations would vary. For example, an operational disruption at the largest
banks and firms with significant payment or market activities could be tolerated for a limited time, while disruptions at others
may be tolerated for longer periods, especially if their operations could be shifted or performed by other market participants.
After September 11, 2001, the securities markets and several futures exchanges were closed until telecommunications and other
services were restored to lower Manhattan. The fact that these markets and new transactions were affected for a short period of
time did not result in significant damage to or loss of confidence in the U.S. financial system.
Diversity within the financial services sector and geographic dispersion of its institutions lend significant resilience to the
Banking and Finance Sector. In addition to the systemically critical institutions described above, the U.S. financial system
consists of many thousands of depository institutions, securities and futures firms, insurance companies, and other financial
service companies, and supports a number of exchanges and over-the-counter markets, all of which provide a high degree
of redundancy across the sector. The competitive structure of the financial industry and the breadth of the financial instruments
provide a level of resiliency against attack and other types of physical or cyber disruptions. Accordingly, for purposes of
determining systemic vulnerabilities, these institutions, while certainly important to the financial system, are not considered
systemically critical.
2.1 Defining Information Parameters
The Banking and Finance Sector may be divided into several functions: deposit and payments systems; credit and liquidity
products; investment products; and risk transfer products. Various members of the FBIIC regulate each of these functions as
outlined in section 1.1. The financial regulators, through their oversight authority, obtain a vast amount of information on
institutions, critical assets and processes, and potential vulnerabilities. Sector-wide risks assessments are process-driven and
address interdependence. Individual institutions also conduct their own risk assessments to identify and mitigate internal vulnerabilities
and external dependencies.
The Treasury Department, through collaboration and insights obtained from the members of the FBIIC and the FSSCC, gathers
sector-specific information. Although the definition of asset data is limited to the categories collected by the regulators, regulatory
examinations and trade association surveys are thorough and provide adequate information for defining financial assets.
General information for assets may include as appropriate to each component of the sector:
• Asset name, mailing address, physical location, owner/operator name;
• Function or type of transaction: deposit and payments systems; credit and liquidity products, including investment and risk
transfer;
• Geographic region, financial center;
• Number of employees;
• Economic contribution: total market value of financial transactions conducted by or through the asset on a daily, weekly,
monthly, and yearly basis;
• International considerations, if any;
• Existing and planned protective measures;
Banking and Finance Sector-Specific Plan