Table of Contents 

Introduction .............................................................................................................................. 1 

Section I: Executive Summary ..................................................................................................... 3 

Key Risks to Banks........................................................................................................................ 4 

Section II: Economic, Financial Markets, and Banking Industry Overview........................................ 7 

Economy ..................................................................................................................................... 7 

Financial Markets........................................................................................................................11 

Banking Industry ........................................................................................................................15 

Section III: Key Risk to Banks .................................................................................................... 19 

Credit Risk....................................................................................................................................... 19 

Agriculture .................................................................................................................................19 

Commercial Real Estate ...............................................................................................................24 

Consumer Debt ...........................................................................................................................29 

Energy .......................................................................................................................................33 

Housing .....................................................................................................................................37 

Leveraged Lending and Corporate Debt.........................................................................................42 

Nonbank Lending........................................................................................................................46 

Small Business Lending ...............................................................................................................48 

Market Risk ..................................................................................................................................... 52 

Interest Rate Risk and Net Interest Margin.....................................................................................52 

Liquidity and Deposits .................................................................................................................56 

Operational Risk .............................................................................................................................. 59 

Cyber Threats and Illicit Activities.................................................................................................59 

Climate-Related Financial Risk.......................................................................................................... 64 

Climate-Related Events ...............................................................................................................64 

Acronyms and Abbreviations..................................................................................................... 69 

Glossary of Terms..................................................................................................................... 71 

2022 Risk Review | V