Mathematical Applications in the Financial Sector: Fair Lending, Default Prediction, and Stress Testing

USI alumni, Andrew McCammack will speak discussing a few topical areas of how statistics and mathematics can be applied in the financial industry and banking, specifically fair lending, default prediction, reserving and pricing, and stress testing.  Fair lending consists of gathering data from different census tracts which is then compared to other “peer group” entities to investigate lending practices.  Default prediction, reserving and pricing is used as a predictor of future loan status. This helps determine how much money to hold in reserves to cover losses, define pricing of new loans, and research new products with this information.  Additionally, all banks of a certain size are required to determine if they have enough capital to remain solvent in a stressed environment.  This is referred to as stress testing, known in the industry as DFAST (Dodd-Frank Stress Testing), is a current “hot topic” which commonly uses modified linear regression.

 

Tuesday, April 17 at 3:00pm

Health Professions Center, HP 1025
8600 University Blvd, Evansville, IN 47712, USA

Event Type

Speaker / Lecture

Target Audience

General Public

Topic

Business / Entrepreneurship

Tags

homepage, myusi, RCOB, PCOSEE, UnivDiv

Cost

FREE

Department
Pott College of Science, Engineering, and Education
Event Contact Name

Dr. Ed Rehkopf

Event Contact Email

eerehkopf@usi.edu

Subscribe
Google Calendar iCal Outlook

Recent Activity