Bernanke on Monitoring the Financial System

Federal Reserve Chairman Ben Bernanke gave a speech discussing the Federal Reserve’s ongoing monitoring of the financial system, and how such monitoring efforts have changed in response to the financial crisis.  In particular, Chairman Bernanke stated that the Federal Reserve has both increased the resources it devotes to monitoring as well as shifted its approach: in addition to monitoring individual financial systems, as it traditionally has, the Federal Reserve has begun emphasizing a more systemic approach that pays attention to the vulnerabilities of the financial system as a whole.  Chairman Bernanke went on to highlight the four components of the financial system that the Federal Reserve now follows most closely:  systemically important financial institutions, shadow banking, asset markets, and the nonfinancial sector.

Click here to view speech in full (links externally to Federal Reserve website).