Publication: Novantas Review, Vol 5, No 3 (November 2014) Co-authors: Andrew Frisbie
Improved modeling for pre-provision net revenue requires strengthening the project framework, working to overcome data sterility and testing alternative approaches. This article addresses the paradox that even as banks improve their competency in PPNR modeling, many institutions are shifting toward an increasingly similar and rigid approach to satisfy statistical tests, exposing banks to business line disconnect and systemic risk.