Risk Management and Governance for Large Financial Institutions

Summary

The financial crisis that led to the Great Recession of 2008–2009 compelled the banking regulators worldwide to reexamine and strengthen their approaches to supervising large, systemically important global financial institutions—the so-called ''too-big-to-fail'' banks. This practice note provides a summary of the consolidated supervision framework—specifically in the area of corporate governance—for large financial institutions that has since been put in place by these banking regulators, the U.S. Board of Governors of the Federal Reserve System (Federal Reserve) being foremost among them.