Financial stability risks focus of new regulator database; climate-related threats will lead off

Joint analysis of financial-stability risks is the aim of a database for federal financial institution regulators that was unveiled Friday by Treasury’s financial research arm.

The first focus of the database: climate-related financial risk, according to the agency hosting the information.

The Joint Analysis Data Environment (JADE) was announced by the Office of Financial Research (OFR), which will host the platform. The OFR said JADE was designed for Financial Stability Oversight Council (FSOC) member agencies.

According to the OFR, the database was designed under the notion that financial stability risks do not respect boundaries between regulators, and that risks can travel from one regulated area to another. The agency indicated that JADE would allow regulators to look across the financial system to see where risks are developing and may spread.

“JADE will enable collaborative, interdisciplinary research on financial stability by providing FSOC member agencies with access to analysis-ready data, analytical software, and high-performance computing in a secure, cloud-based environment,” the agency said in a release.

However, the OFR said that climate-related financial risk is the first use case the FSOC identified for use of JADE. The agency noted that the database is designed to support research on a variety of financial stability topics.

“JADE currently provides access to a mix of publicly available climate and financial data, such as data on fires and floods,” the OFR said. “Members of the FSOC’s Climate-related Financial Risk Committee identified the data OFR should initially make available in JADE.”

Access to the JADE, the OFR said, will be extended to OFR and FSOC member agency researchers, analysts, and support staff through their respective agency contact. Approximately three agencies will be onboarded each quarter, the OFR said, based on the readiness of the agencies and their research needs.

Office of Financial Research Launches Joint Analysis Data Environment for FSOC