Banks urged to expand risk management techniques

US - A top Treasury Department official said this week that regulators need to push banks to back up advanced risk management techniques with old-fashioned, case-by-case credit analysis.

Peter Fisher, the under secretary for domestic finance, said lenders were lulled to inattention by favourable economic conditions in the 1990s and largely abandoned the "dirty-fingernail business of credit analysis." They have become too reliant on risk models and other formulas to measure their credit exposur

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