Federal regulators are urging financial institutions to keep more detailed data about how they manage risks, including how often they trade, and for how long.
The Federal Reserve’s Financial Stability Oversight Council released a letter Friday that lays out five new guidelines for financial institutions and others on how to keep data about risk-management practices and how they protect customers.
The Fed says it expects banks to comply with the new guidelines by Oct. 15.
The guidance says financial institutions must make sure that their risk management policies are transparent and publicly available to the public, and to provide more information about how and when they manage risk.
It also requires them to update information on their risk assessment tools and risk scoring systems to make sure they’re accurate and complete.
The letter says banks should keep track of how they account for customer losses and should regularly report losses to their customers.
“As we have stated before, the goal of the Commission is to encourage financial institutions, both large and small, to better understand and manage risk, and in turn, protect customers,” said Mark Dubowitz, chairman of the Financial Stability Council, in a statement.
“In order to achieve that, the Council is committed to working with financial institutions in the United States and abroad to provide them with the tools necessary to better manage risk.”
The letter was released after a series of high-profile losses by the U.S. financial system.
In January, the U,S.
government announced that it would require banks to provide data to the Federal Reserve on whether they’re providing customer protection to consumers.
In August, regulators in the U.,S.
and other countries announced they would require financial institutions with at least $10 billion in assets to keep a detailed account of how their products and services are being used.
In April, the Fed announced that banks would have to make more information available to customers, and the regulator said it would update the way it tracks the risk of certain types of investment products and assets.