Overall risks to financial stability remain moderate, similar to a year ago, the US Office of Financial Research said in releasing its 2017 Annual Report to Congress and 2017 Financial Stability Report.
New vulnerabilities have emerged over the past year, according to the reports. Market risk — the potential for sudden changes in asset prices that could disrupt economic growth — remains elevated, particularly in the stock markets and bond markets. Cybersecurity vulnerabilities are also a concern. Meanwhile, financial-system resilience has improved.
The reports highlight three key threats to financial stability: