Office of Financial Research

Program Summary by Budget Activity

Total FTE includes Reimbursable/Detail staff

Summary

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 (the

Dodd-Frank Act) established the Office of

Financial Research (OFR or Office) within 

the Department of the Treasury (Treasury)

to serve the Financial Stability Oversight 

Council (Council), its member agencies, and 

the public by improving the quality, 

transparency, and accessibility of financial 

data and information; conducting and 

sponsoring research related to financial 

stability; and promoting best practices in 

risk management.

Pursuant to the Dodd-Frank Act, the Board 

of Governors of the Federal Reserve 

(Federal Reserve Board) provided funding 

to support the OFR for two years. The Act 

directed the Treasury to establish by 

regulation (with the approval of the Council) 

a schedule to collect assessments from bank 

holding companies and certain nonbank 

financial companies to cover the expenses of 

the OFR and the Council, plus certain

expenses for implementing the orderly 

liquidation activities of the Federal Deposit 

Insurance Corporation, beginning two years 

after the passage of the Act. 

On May 21, 2012, Treasury issued a final 

rule with the approval of the Council for 

collecting assessments from bank holding 

companies with total consolidated assets of 

$50 billion or greater and an interim final 

rule for collecting assessments from 

nonbank financial companies supervised by 

the Federal Reserve Board. On July 20, 

2012, Treasury collected the first Financial 

Research Fund assessment.

Consistent with the Dodd-Frank Act, the

OFR has established five strategic goals to 

support achievement of its mission:

Support the Council through the secure 

provision of high-quality financial data 

and analysis needed to monitor threats to 

financial stability.

Key objectives underlying this goal include:

 Providing research and analytical 

support to the Council on 

developments in the financial 

system and potential threats to 

financial stability,

 Collecting and securely providing 

data to the Council and its member 

agencies when such data are

essential to monitoring threats to 

financial stability and are not

otherwise available,

 Reducing reporting burdens for 

financial institutions by coordinating 

data requests, and

 Enhancing the quality and

consistency of financial data 

available to Council member 

agencies through direct data 
services, including shared 

procurement, data validation, and 

data management.

Develop and promote data-related 

standards and best practices.

Key objectives underlying this goal include:

 Facilitating the establishment of 

global data-related standards to 

improve the quality and scope of 

data related to financial stability,

 Reducing the cost of reporting for 

financial market participants, and

 Assisting Council members in 

defining standards and best practices 

for data collection and management

that will increase efficiencies.

Establish a center of excellence for

research on financial stability and promote 

best practices for financial risk 

management.

Key objectives underlying this goal include:

 Conducting and sponsoring

research—including collaboration 

with a network of outside 

researchers—to identify, monitor, 

and evaluate threats to financial 

stability and to analyze disruptions 

when and after they occur,

 Evaluating and reporting on stress 

tests or other stability-related 

evaluations,

 Providing advice on the impact of 

policies related to systemic risk, and

 Promoting best practices in financial 

risk management.

Provide the public with key data and

analysis, while protecting sensitive 

information.

Key objectives underlying this goal include:

 Increasing the transparency and 

distribution of research on the

financial system by publishing 

financial analysis, data, and 

information, while safeguarding

sensitive information. Key 

publications will include annual 

reports of the OFR that contain its 

analysis and information about its 

activities, working papers that 

highlight OFR research activities, as 

well as reference databases on 

financial companies and financial 

institutions. 

 Testifying before Congress on OFR 

activities, and its assessment of 

significant market development and 

potential threats to financial stability.

Establish the OFR as an efficient 

organization and world-class workplace.

Key objectives underlying this goal include:

 Building the OFR workforce,

 Managing OFR information, and

 Administering Office finances to 

fulfill the OFR’s mission in a costeffective, transparent, and 

accountable manner, modeling its 

processes after best practice 

standards.

OFR FY 2014 Budget Highlights

Dollars in Thousands

Office of Financial Research FTE Amount

FY 2012 Actual 65 $39,574 

FY 2013 Estimated Budget 167 $78,186 

Total FY 2014 Base 167 $78,186 

Program Changes:

Program Adjustment: 83 $10,799 

Personnel Steady State 83 $12,531 

Non-Personnel Steady State ($1,732)

Total FY 2014 Estimated Budget 250 $88,985 

*Total FTE includes Reimbursable/Detail staff

*The adjustment includes the impacts of inflation and the 

proposed one percent pay increase
Explanation of Budget Activities 

Data Center ($47,987,000 from 

assessments)

The Dodd-Frank Act provided that the Data 

Center, on behalf of the Council, collect, 

validate, and maintain all data necessary to 

carry out the duties of the Office. As part of 

this mandate, the Data Center provides data 

services to federal financial regulators to 

increase efficiency in data acquisition and 

management, to promote the reduction of 

redundant reporting requirements across the 

regulatory system (including through more 

effective data sharing arrangements), and to 

ensure the security of sensitive data. The 

promotion of standards for financial data is 

expected to provide benefits to regulators 

and financial market participants by making 

data aggregation easier, improving analysis, 

and reducing costs associated with data 

collection. To support transparency in its 

operations and better public understanding 

of risks to financial stability, the Data Center 

also publishes data and data-related 

information, as well as information on its 

activities.

Research and Analaysis ($12,432,000 from 

assessments)

The Dodd-Frank Act provided that the 

Research and Analysis Center, on behalf of 

the Council, develop and maintain 

independent analytical capabilities and 

computing resources: 

 To develop and maintain metrics and 

reporting systems for risks to the 

financial stability of the United States;

 To monitor, investigate, and report on 

changes in system-wide risk levels and 

patterns to the Council and to Congress; 

 To conduct, coordinate, and sponsor 

research to support and improve 

regulation of financial entities and 

markets;

 To evaluate and report on stress tests or 

other stability-related evaluations of 

financial entities overseen by Council 

member agencies;

 To maintain the expertise necessary to 

support specific requests for advice and 

assistance from financial regulators;

 To investigate disruptions and failures in 

the financial markets, report findings, 

and make recommendations to the 

Council based on those findings;

 To conduct studies and provide advice 

on the impact of policies related to 

systemic risk; and,

 To promote best practices for financial 

risk management.

To support effective achievement of these 

objectives, the OFR is also establishing 

forums and networks to bring together 

experts from within and outside the 

regulatory system. In addition, the OFR is 

publishing key results of its analyses to 

support transparency in its operations and 

promote public understanding of threats to 

financial stability.

Operations and Support Services ($28,566,000 

from assessments) 

These activities cover all operational, legal, 

and administrative functions that support the 

effective, transparent, and well-monitored 

delivery of the OFR’s core outputs related to 

data, research, and analysis. This includes 

support provided through reimbursable 

arrangements with other activities in 

Treasury Departmental Offices, as well as 

outside service providers.

Legislative Proposals 

There are no current proposals for amending the 

authorizing legislation. 
OFR Performance by Budget Activity

Budget Activity Performance Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Target Target

Data Center

Percent of responses to Council 

data and research requests that 

meet delivery targets

N/A N/A N/A 80 85

Data Center

Percent of project milestones met 

for establishment of an 

interagency data inventory 

program

N/A N/A N/A 85 N/A

Data Center Percent of milestones met in 

information standards strategy N/A N/A N/A 80 80

Research and Analysis Number of R&A products 

published N/A N/A N/A 8 15

Research and Analysis

Number of R&A products coauthored or pursued in 

collaboration with outside 

researchers, government 

agencies, or others

N/A N/A N/A 5 10

Operations and Support 

Services

Percent increase in the number of 

OFR web page visitors N/A N/A N/A 25 15

Operations and Support 

Services

Percent of OFR implementation 

priorities completed N/A N/A N/A 94 94

Operations and Support 

Services

Cost of the OFR relative to 

assessed assets, per $billion 

assessed

N/A N/A N/A 7,700

7,700 (to 

be based 

on a 4-

year 

rolling 

average)

Operations and Support 

Services

Total staff hired compared to 

targets N/A N/A N/A 85 95

Key: N/A - Not in Effect; DISC - Discontinued; B – Baseline

Description of Performance 

To further reinforce transparency and 

accountability in its operations, the OFR has 

developed foundational performance 

measures tied its strategic goals and will 

begin collecting data for these measures in 

FY 2013. These measures will establish a 

foundation for the organization’s continued 

stand-up, with evolution of these measures 

expected as the organization continues to 

mature and gain experience. Similarly, as 

data are collected, that information will 

better inform the target-setting process in 

FY 2014 and beyond.