This lack of connectivity can have a large impact on an individual’s economic mobility.23 Before turning to the role of regulators, let me first speak a bit about the role of private institutions in supporting these communities. First, CDFIs and Minority Depository Institutions or MDIs are critical because they deliver financial products to places and people often left behind by other financial institutions.
To count or not to count: internal models after regulatory reform So far I have reminded us why internal model-based capital calculation – despite its weaknesses – remains a worthwhile regulatory tool. Accordingly, the post-crisis regulatory agenda still builds on the principle of risk-based regulation and still encourages the use of internal modelling techniques.