The Office of Financial Research introduced two new monitoring tools, the Financial System Vulnerabilities Monitor (FSVM) and the Financial Stress Index (FSI). The FSVM is a heat map of 58 indicators of potential vulnerabilities. It gives early warning signals for further investigation. The FSI, constructed from 33 financial market indicators, is a daily market-based snapshot of stress in global financial markets.

The FSVM and FSI are part of the OFR's quantitative monitoring toolkit. They signal where the OFR needs to investigate potential stresses and vulnerabilities. They conduct those investigations using a broader set of data, qualitative information, and expert analysis.

Director Richard Berner describes in this blog why monitoring financial stability requires tracking both vulnerabilities and stress.