Basle Report: Bank Credit Models Are Inadequate
BASLE, Switzerland--Citing inadequate data and model validation techniques, The Basle Committee on Banking Supervision has officially declared that banks' internal credit risk models are insufficient as a tool that can be used by individual banks to set their own regulatory capital requirements for credit risk. The committee made the conclusion as part of a recent study--"Credit Risk Modeling: Current Practices and Applications"-- conducted by the committee's Models Task Force of industrywide
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