The Dodd-Frank Wall Street Reform and Consumer Protection Act established the Office of Financial Research (OFR) within the Treasury Department to improve the quality of financial data available to policymakers and facilitate more robust and sophisticated analysis of the financial system. Building from its progress to date, the OFR is ramping up its services to Financial Stability Oversight Council (“Council”) members, their agencies and staff. The OFR is beginning to provide data and analysis, including through its first Annual Report published in July 2012.
The OFR will produce, promote and sponsor financial research aimed at developing the analytical tools we need to assess threats to financial stability. This research will support the work of the Financial Stability Oversight Council (“Council”) in assessing potential risks to the financial system. The OFR is also working to establish forums and networks to bring together experts within and outside the regulatory system in research on these issues. In addition to its research on topics related to financial stability, the OFR will work with academia and the private sector to promote best practices in risk management through publications and forums.
The OFR’s promise is to collect and make available, to regulators and to the public, more and better financial data. The OFR is working with regulators to fill in the information gaps in the regulators’ data toolbox. The OFR will collaborate with and provide data services to Federal financial regulators, creating economies of scale, lowering operating costs, and eliminating redundant reporting requirements across the regulatory system, while also ensuring the security of sensitive data. Finally, the OFR will promote standards for financial data that will provide benefits to regulators and financial market participants by making data aggregation easier, improving analysis, and reducing costs associated with data collection.
The OFR is continuing to reinforce its institutional infrastructure and accelerating work to establish the information technology platforms and business systems critical to achieving its mission.