![]() ![]() Since the publication of the report, the Council has made considerable progress in advancing the report’s recommendations. It also provided concrete recommendations for member agencies to better assess climate-related financial stability risks, enhance climate-related disclosures, improve access to and the quality of climate-related financial data, and build capacity and expertise regarding climate-related financial risk. The report identified ongoing activities at Council member agencies to understand and combat climate-related financial risk. financial stability in its Report on Climate-related Financial Risk , published in October 2021. The Council identified climate change as an emerging threat to U.S. financial stability, and of the Nonbank Mortgage Servicing Task Force, as well as the creation of an Open-end Fund Working Group. Its progress on these efforts has included the reestablishment of the Council’s Hedge Fund Working Group, which has developed an interagency risk-monitoring framework to assess hedge fund-related risks to U.S. financial stability posed by three types of nonbank financial institutions: hedge funds, open-end mutual funds, and money market funds. In 2021, the Council made it a priority to evaluate and address the risks to U.S. The market dislocations of March 2020 further demonstrated that some nonbank financial institutions remain vulnerable and may amplify or transmit stress in the financial system. While recognizing these benefits, the Council has identified certain vulnerabilities. Nonbank financial institutions are an essential source of capital in financial markets and provide vital funding to the U.S. The Council has made considerable progress on each of these four priorities, as described below. In 2022, the Council identified a fourth key priority: risks related to digital assets. In 2021, the Council identified three key priorities related to significant vulnerabilities in the financial system: nonbank financial intermediation, climate-related financial risk, and Treasury market resilience. The Council’s annual reports outline potential emerging threats and vulnerabilities, such as financial risks related to real estate, credit, and other markets institutional risks associated with large bank holding companies and investment funds risks related to the structure of Treasury markets and other financial markets cybersecurity risks and climate-related financial risks. ![]() financial stability improves communication with the public regarding these risks through reports and other publications and facilitates cooperation and communication among member agencies on financial stability-related matters. The Council brings together its members to assess, monitor, and mitigate risks to U.S. The Council is chaired by the Secretary of the Treasury and consists of 10 voting members and 5 nonvoting members, bringing together the expertise of federal financial regulators, state regulators, and an independent insurance expert appointed by the President. The Council is charged by statute with 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. ![]()
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