The RADAR data warehouse provides direct, immediate access to a broad array of U.S. consumer credit data, including credit cards, auto loans, student loans, mortgages, and more. Its sophisticated technology allows users to generate and view data by geography, demographics, time periods, or loan status. It has many options for customizing the views of data, including the ability to develop maps or charts for fast and meaningful analysis. Although researchers are able to see all relevant loan data, any personal identifying information is removed from individual loan files to protect consumers' privacy.
A business support team at the Philadelphia Fed helps ensure that the data are high quality and answers questions from analysts around the Federal Reserve System. These experts can also incorporate the best thinking from around the Fed on how to use data in the most meaningful ways. A second technical team helps support the data warehouse, which is housed at the Kansas City Fed, and helps provide technical assistance to users of the data.
While the data warehouse is mainly used for bank surveillance purposes, it has also proven useful in the Fed's community development initiatives. For example, researchers have been able to generate reports that provide a detailed and specific snapshot of conditions in a region's mortgage sector, including delinquencies and foreclosures. This ability to dig deeper into the data allows researchers to more easily spot patterns or trends, providing a better understanding of a community's or a region's credit health.
Before RADAR, examiners evaluated an institution's assessment of any impairment or stresses on securities within its portfolio. Now, RADAR's securities evaluation service brings an independent analysis to the examination process. Through this service, bank examiners and market analysts throughout the System have access to a team of experts at the Philadelphia Fed whose analysis and evaluation of securities can assist them in assessing the securities positions of financial institutions. Complex securities, which are often illiquid and opaque, can prove challenging to accurately evaluate. But users of the service cite the team's understanding and in-depth knowledge as invaluable in assessing these complex types of securities.
Enhanced surveillance capabilities provide an overall view of markets, as well as analysis at the sector level or at the individual security level. Using the securities assessment process, examiners can more accurately evaluate a bank's risk management practices.
This service integrates the information contained in the data warehouse with risk models and securities evaluation software. In addition, the service allows examiners access to modeling tools to create benchmarks against which to compare banks' own valuations of the securities they hold in their portfolios. This way, examiners can help bank management refine their securities valuation process to better estimate credit risk and accurately reflect financials.
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