Model Validation Council
The Model Validation Council is a group formed by the Federal Reserve in April of 2012 to give expert and independent advice on its process to rigorously assess the models used in stress tests of banking institutions.
Formation of the council was one part of the Federal Reserve's efforts to tap outside expertise in the stress testing process. In another step, the Federal Reserve would host a symposium on stress testing models on Sept. 13 and 14 of 2012 at the Federal Reserve Bank of Boston. Discussions would focus on the design and implementation of stress testing models, and cover topics including the relative merits of different modeling frameworks, best industry practices, and key challenges. Participants would include experts from academia, industry, and the Federal Reserve.
Model Validation Council Members
The 2012 Model Validation Council members are:
- Francis X. Diebold, economics professor in the Department of Economics at the University of Pennsylvania (chair);
- Mark Flannery, professor at the Warrington College of Business Administration at the University of Florida;
- Philippe Jorion, professor at the Paul Merage School of Business at the University of California at Irvine;
- Allan Timmermann, professor at the Rady School of Management at the University of California at San Diego.
- Fed Creates Council to Study Stress Tests of U.S. Banks. Bloomberg Businessweek.