top of page
Rechercher
  • Photo du rédacteurHélène Dufour

Should Bank Stress Tests Be Fair?

"We argue that simply pooling data across banks treats banks equally but is subject to two deficiencies: it may distort the impact of legitimate portfolio features, and it is vulnerable to implicit misdirection of legitimate information to infer bank identity. We compare various notions of regression fairness to address these deficiencies, considering both forecast accuracy and equal treatment. In the setting of linear models, we argue for estimating and then discarding centered bank fixed effects as preferable to simply ignoring differences across banks."


1 vue0 commentaire

Posts récents

Voir tout

Comments on the Final Trilogue Version of the AI Act

“This paper provides a comprehensive analysis of the recent EU AI Act, the regulatory framework surrounding Artificial Intelligence (AI), focusing on foundation models, open-source exemptions, remote

Comments


bottom of page