CCAR leaves modelling teams short of time and staff

Federal Reserve stress tests are a "perfect storm of pressure"

Federal Reserve
Federal Reserve: banks under pressure to adapt models to its changing demands

Modelling specialists at large US banks are being pushed to their limits by the Federal Reserve's stress tests, as banks rush to introduce or adapt models to its shifting demands, and supervisors apply ever-tougher standards on the vetting of these models. In some cases, banks complain of having to develop and then validate models in the space of a few months.

"To me, that is the reason everyone is talking about this. It's a perfect storm of pressure, where you have a lot of new models coming in

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