With perfect hindsight, banks might have been spared the pain of the financial crisis. But in the absence of a crystal ball, magic mirror or time machine, such a level of clairvoyance is hard to achieve. In its absence, banks and regulators have searched for ways of making sure the possibility of future downturns is considered – for instance, by using counter-cyclical capital buffers, more pessimistic modelling assumptions and regular supervisory stress tests.
Accountants are also doing their bi
The week on Risk.net, December 2–8, 2017Receive this by email