European regulators are to consult on banks’ use of machine learning (ML) techniques to calculate credit risk capital requirements—a move that some hope will correct perceived imbalances in the way that national regulators apply existing regulations, which some claim has led to an uneven playing field.
The European Banking Authority is working on a discussion paper to be followed by a consultation on the use of ML techniques. The focus will be on internal ratings-based (IRB) models used to
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.