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A Survey of Current and Potential Uses of Market Data by the FDIC

Various ways in which the supervisors of depository institutions currently use market information are illustrated, and some potential applications of market data that the FDIC is considering in its insurance functions are highlighted. For purposes of deposit insurance pricing, the FDIC is presently...

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Bibliographic Details
Published in:FDIC Banking Review 2005-01, Vol.17 (1), p.1
Main Authors: Burton, Steven, Seale, Gary A
Format: Article
Language:English
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Online Access:Get full text
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Summary:Various ways in which the supervisors of depository institutions currently use market information are illustrated, and some potential applications of market data that the FDIC is considering in its insurance functions are highlighted. For purposes of deposit insurance pricing, the FDIC is presently considering a variety of market variables that best differentiate risk in financial institutions. To apply this information to insured subsidiaries, it will also be necessary to identify explicit linkages between market data, which related to the consolidated operations of a company, and financial performance information that is related to insured subsidiaries. Finally, analysts and examiners will have to be able to clearly define the notions of significance and permanence as they related to change in market valuations. For all these reasons, the FDIC is pursuing the creation of a market data warehouse.
ISSN:1041-939X