Large Bank Examination Workshop February 2026

Discussion: How Many Models? • Based on this definition and description, how many models do you think are used in a typical U.S. bank? a) 3?

b) 10? c) 50?

• Are all these models of equal significance for the operations, integrity and security of the bank?

• Is a spreadsheet a model?

• Should they all be subject to the same process of governance, risk management and regulatory oversight?

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Discussion: Model Types • Make a list of applications or activities within a bank in which models play an important role.

• 1 • 2 • 3 • 4….

• Where possible, give examples of specific outputs or decision variables (e.g. prices, risk measures, etc.) generated by the models that you describe.

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