Filtered by: Model validation

Clear all filters

Mortgage lenders’ behavior models require updating

In 2012 the Dutch Minister of Finance informed the Lower House of a number of measures concerning the interest rate policy of providers of mortgage credit.

Read More

Model risk for non-maturing products

Most banks have significant amounts of non-maturing products on their balance sheets, such as current accounts and savings deposits. The contractual maturity is very small, so that the client could withdraw his or her money at short notice and banks can adjust interest rates at any time.

Read More

Model validation: pain or gain?

These days you no longer have to explain to people that mathematical models are used in the financial world. They are more than often pointed to when people try to find what started the crisis! As an econometrist and consultant on risk management, I find it rather difficult to agree with that. But I cannot deny either that misuse of the models has played a role in the financial crisis.

Read More