Each participating institution was asked to supply, in a standardized format, detailed information that supervisors could use to estimate losses and revenues, such as details about loan characteristics. These data allowed supervisors to make consistent estimates using independently constructed models. Finally, supervisors systematically incorporated all of these inputs into loss, revenue, and reserve estimates for each institution.
Sometimes we have a tendency to feel that high net worth individuals or resource rich corporate or bankers do not need financial education. Nothing could be farther from truth. To quote an example, many corporates have incurred losses because they had not hedged their foreign currency exposures.