Bank capital models need more consistency: OCC's Pasch
Regulators planning follow-up to trading book study that revealed huge variation in modelled RWA numbers
Bank regulations should be adjusted to create more consistency in modelled capital numbers, according to Ron Pasch, deputy comptroller for international banking at the Office of the Comptroller of the Currency (OCC). Pasch, a member of the Basel Committee on Banking Supervision's standards implementation group, was involved in a recent benchmarking study that revealed huge variations between participating banks.
"What you hope – when you ask banks to run the same trades through their models – is
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