As regulators see it, banks' own computer models provide the perfect gauge of how much capital to set aside for big swings in the value of securities and derivatives.

But some bankers and risk management experts aren't so sure that the models, which use historical market data and statistical projections to estimate how much the value of a bank's portfolio can rise or fall, can be translated into fair capital standards.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.