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State financial regulators serve as the primary regulator for 78 percent of the nation's banks. In this role, state regulators have an important mandate to ensure safety and soundness among their chartered financial institutions. This is done through the routine monitoring of potential risks at all state-chartered banks.

To help state regulators detect and address regional and national trends related to new and emerging risks, the CSBS Risk ID Team and Advisory Group regularly meets and employ proactive and innovative approaches to these supervisory challenges.

The CSBS Risk ID Team and Advisory Group is made up of approximately 100 field examiners from 45 states. Under the guidance of the SSPC, the Risk ID Team and Advisory Group is specifically charged with monitoring the supervisory risk landscape across the country, conducting an in-depth analysis of any risk trends, and elevating these risks to the SSPC should they pose a potential threat to safety and soundness in the financial market.

Risk ID Team members effectively monitor risks in the banking system because the team is comprised of those who see risk first—the examiners.  Once a risk is identified, the team, in consultation with the SSPC, may raise the issue with federal counterparts, conduct an in depth analysis, and ultimately publish its findings in quarterly reports for state regulators, summarizing the risk landscape.

Topics from the quarterly reports that warrant further understanding or an in-depth analysis are often highlighted in the form of a Risk Advisory Bulletin, a regulator-only document intended to raise awareness of certain regional risks and supervisory concerns reported by members of the CSBS Risk ID Team.

In 2016, the Risk ID Team began piloting a new publication called CSBS Spotlights that provides analysis of nationwide emerging trends in the financial market. The CSBS Spotlight series is available to regulator and banks members of CSBS. Featured topics in 2016 include: apartment vacancy rates, liquidity trends in banking, and recent trends in commercial and industrial lending.

Both the Risk Advisory Bulletins and the CSBS Spotlights are valuable tools to help state regulators assess emerging issues in their own states. These publications have fostered increased dialogue between state regulators and with federal regulators on emerging risks and supervisory challenges and help raise awareness of these issues within the regulator community.