Board of Governors of the Federal Reserve System

prices, to correct for gaps in the current rules and improve risk capture...available-for-sale securities in capital ratios beyond the largest, most

Page 1 of 4 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 DIVISION OF SUPERVISION AND REGULATION SR 95-51 (SUP) November

key driver of the crisis, or did other factors account for its rapid contagion...prices that took place during the crisis. Accordingly, channels of "indirect

key element in meeting the Federal Reserve's dual mandate for monetary...prices. In an unstable financial system, adverse events are more likely

communications—the framework it uses to pursue its congressionally assigned...price stability. The review was focused on two specific areas: the Federal

key features: • A New-Keynesian structure for price and wage dynamics....and, hence, price pressures as in Gali (2011). • Production of goods and

and, certainly, is in the best shape that it has been in since the crisis...the lowest level, outside of a period from 1999 to 2000, since the 1960s

prices. Monetary policy is implemented primarily through open market operations...prices, the Federal Reserve has a broad responsibility to foster financial

Key to almost all of these initiatives has been an increasing effort by...price sensitivity analysis, the high risk test successfully helped institutions

solvency—the bank's ability to absorb the losses on its securities and...ability—and that of bank managers—to predict how losses might be incurred