Bank regulators should tread carefully in weighing use of new risk models

Reynolds, Katherine M.
March 1998
Bond Buyer;03/02/98, Vol. 323 Issue 30341, p34
Trade Publication
Focuses on US Federal Reserve Board chairman Alan Greenspan's advice to bank regulators to explore ways of incorporating risk models in setting capital standards. Caution in developing new regulatory models; Factors that have made it important for bank regulators to reevaluate the method of measuring a bank's financial soundness; Inconsistencies of the current capital ratio requirements.


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