U.S. Bank Regulators Issue Guidance on Counterparty Credit Risk

U.S. banking regulators issued new guidance on counterparty credit risk management for large banks, stressing the need for adequate controls and measurement systems.

The Federal Reserve, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Office of Thrift Supervision said today the financial crisis of 2007-2009 “revealed weaknesses” in counterparty credit risk management “at many banking organizations.”