Banks and other financial institutions are advancing their efforts in quantifying climate risk ever since the Task Force on Climate-related Financial Disclosures (TCFD) published a set of recommendations on the disclosure of climate-related risks. To date, however, no prescriptive methods are given and Banks...

In the first blog on climate risk, we discussed that climate change is an important factor for banks. First of all, physical risks such as flooding may lead to damage to premises and products, which in turn leads to losses. Also, transitions risks arise...

In Crime Scene Investigation series the main detective understands the content of a complex file by just taking one quick glance at it. Evidently, it doesn’t work this way in practice, but increased computational power and further developed techniques allow for much quicker analyses...

Sinds 1 april 2021 zijn de leennormen van de Vereniging van Financieringsondernemingen in Nederland, kortweg VFN, voor consumptief krediet verder aangescherpt. Deze nieuwe leennormen zijn de uitkomst van afspraken tussen de VFN en de AFM. Hiermee wordt het krediet beter afgestemd op de persoonlijke situatie van de klant. Daadwerkelijke kosten Met de...

As AI solutions grow more capable, they play an increasingly important role in decision making—which raises well-known concerns that models might not be fair. A credit-card-fraud detector might be biased when it intervenes and blocks transactions; loan applicants might be rejected after transaction profiling....

The climate all around the globe is changing. Although this is a gradual process, some of the consequences are already visible in the world today. Also in the Netherlands more extreme weather conditions could be observed over the past years. The negative consequences of...

Discussing the ambiguous article and showing the impact of the maximum recovery period During intensified regulatory oversight, ECB found that banks could keep defaults with high losses open forever which kept many high losses out of the modelling dataset, leading to seemingly low losses...

Imagine creating a model that reviews thousands of transactions every second and aims to flag the transactions related to money laundering. This is something that has become possible thanks to advances in artificial intelligence in recent years, and even appears to be a necessity...

Counter Financial Crime (CFC) modelling is a relatively new field which has seen a lot of rapid progression in the past years. This rapid progression has been spurred on by the Dutch Central Bank (DNB) after it became clear that banks were insufficiently deterring...