August 18, 2024 (NO COMMENTS)

Research provides extra insight on reasons for decline in internal models

At least 10 banks around the world will apply to regulators for permission to use internal models to calculate capital requirements in upcoming trading book rules, a study by the International Swaps and Derivatives Association and consultancy EY has found. The findings shed further light on the decline in banks using models to underpin capital requirements, and the reasons for that decline. “Based on all the work we have done, there is a stark decline in the take-up of internal models,” says