Case Study

Banking Back-Testing

Banking Back-Testing

Case Study: Back-T esting The Challenge A mid-tier bank with between four and five billion dollars in assets was facing audi- tor scrutiny to validate cash flow model assumptions it was using for an acquisition from over a year ago. The bank faced the challenge of how it would leverage predic- tive models and assumptions using detailed historical data, which would be critical in order to accurately estimate cash flows. The situation req

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