Three global supervisory organizations issued recommendations on how financial service regulators should evaluate firms’ monitoring of credit risk. Among other things, regulators should ensure that firms (1) do not over-rely on internal models; (2) do not engage in risk-taking behaviors in a “search for yield” in the current international low interest rate environment; (3) monitor issues that might arise in connection with the “growing need” for high-quality liquid collateral, and respond appropriately as necessary; and (4) capture central counterparty exposures as part of their credit risk management. The three global organizations are the Basel Committee on Banking Supervision, the International Organization of Securities Commissions and the International Association of Insurance Supervisors.