WASHINGTON -- Institutions are starting to better monitor their derivatives activities, a national association of leading bankers, industry officials, and academics announced this week.
The Group of 30 said said nearly 95% of the dealers and users of derivatives that responded to its survey are either using stress testing to measure how changes in the economy will effect their holdings or plan to shortly. In 1993, only 19% of the firms surveyed by the Group of 30 expressed interest in stress-testing.
The organization said 125 dealers and 149 end users responded to the 200-question survey.
The survey also found that 60% of end users will have an independent risk-management function within a year. And, 99% of dealers said senior management reviewed and approved of their risk management tools.