Byres hints at Basel Committee rethink on risk-weight modelling
Overly complex risk models may make it impossible to compare banks' risk profiles, but too much simplification gives a poor reflection of reality, Wayne Byres, secretary-general of the Basel Committee on Banking Supervision, told an audience in Seoul today.
The comments follow a report by the Basel Committee in January, which found "clear evidence" that differences in modelling choices were behind variations in banks' risk-weighted assets. Stefan Ingves, chairman of the Basel Committee, noted at
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