What is the function of the Office of Financial Research created by Dodd-Frank?

The function of the Office of Financial Research, as established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, is primarily to improve the quality of financial data available to policymakers. This office plays a crucial role in enhancing financial stability by providing comprehensive data analysis, conducting research on systemic risks, and facilitating a clearer, more informed understanding of the financial system. By focusing on the quality and accessibility of financial data, the Office helps to inform regulatory actions and responses to potential financial crises, ultimately supporting effective policy decisions.

The other options do not align with the core mission of the Office of Financial Research. Managing consumer credit data pertains more to consumer protection agencies and credit bureaus. Overseeing bank mergers and acquisitions is a function typically handled by regulatory bodies such as the Federal Reserve or the Department of Justice, which ensure competitive practices in the banking sector. Regulating insurance markets falls under the jurisdiction of state insurance regulators, separate from the focus of the Office of Financial Research.