BPI says SR 11-7 should go; bank model risk chiefs say ‘no’
Lobby group wants US guidance repealed; practitioners want consistent model supervision and audit
Senior model risk executives at US banks are at odds with a leading industry trading association over the future of cornerstone guidance issued by the US Federal Reserve more than a decade ago.
Last April, the Bank Policy Institute called for the repeal of SR 11-7, the Fed’s groundbreaking supervisory letter on model risk management, and by last November had garnered support from some Republican lawmakers. But the BPI hasn’t necessarily persuaded risk managers working at its own member banks.
“I
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