10-31 As compared to the BIS standardized framework model for measuring market risk,the internal models allowed by the large banks are subject to audit by the regulators.

Question

Quizplus · Accepted Answer

The statement is true. While the internal models allowed by large banks may differ from the standardized framework model used by the Bank for International Settlements (BIS) for measuring market risk, they are still subject to audit by the regulators to ensure they meet regulatory standards for risk management.

10-31 as Compared to the BIS Standardized Framework Model for Measuring