Today, senior financial analysts from the Office of Financial Research (OFR) published a blog post, Five Risk Areas That Financial Regulators Should Watch in 2023.

As background, the OFR was established in 2010 as part of the Dodd-Frank market and regulatory reforms. The stated mission of the OFR is to “promote financial stability by delivering high-quality financial data, standards and analysis principally to support the Financial Stability Oversight Council and its member agencies.” The Financial Stability Oversight Council is a 16-member council of federal and state financial regulators tasked with the job of “identifying risks to the financial stability of the United States; promoting market discipline; and responding to emerging threats to the stability of the U.S. financial system.”

Without further ado, here is the list of financial regulatory risks of concern published by the OFR’s senior financial analysts:

1. The global economy is experiencing high inflation driven by strong demand, following the Covid-19 pandemic and disruptions in the supply of energy and other commodities.

2. Price volatility across commodities translates into several financial-market risks.

3. Market risk may reinforce other financial-stability vulnerabilities.

4.  Further bond fund outflows may strain fixed income markets.

5. Cybersecurity risks are growing in frequency and costs.

Additional information about each risk, including informative charts, is available at the OFR’s blog post.

Good day. Good insights. DR2