Banking group urges regulators to pull back longstanding ‘model risk guidance’

The Bank Policy Institute is urging regulators to withdraw and repropose 14-year-old guidance on “model risk management,” saying the de facto regulation disrupts banking operations and blocks “effective use” of artificial intelligence.

The financial sector group offers up the 2011 Office of the Comptroller of the Currency-Federal Reserve Board guidance, which it calls the “most damaging” in banking, as a prime candidate to be pulled back under the Trump administration’s initiative to enable technological innovation and economic growth through...