After bruising EU model review, banks ask: ‘Why bother?’

Post-Trim changes erode capital savings from internal models while raising their running costs

In the film Groundhog day, TV weatherman Phil Connors gets stuck in a time loop, reliving the same day over and over again. For one bank executive, a five-year regulatory review of banks’ internal models felt just like the film. Risk managers had to provide a mountain of data and work through hundreds of calculations, with requests from the European Central Bank (ECB) seemingly going over old