Kwamie Dunbar

Kwamie Dunbar is affiliated with Sacred Heart University and contributes to research in finance and risk management. His work focuses on improving methodologies for assessing risk-based capital requirements in banking, particularly for revolving retail exposures.

In 2012, Dunbar published a paper proposing a novel model for forecasting and stress-testing probabilities of default (PDs) using options theory and macroeconomic variables. This research addresses gaps identified during the 2009 SCAP stress tests and aims to enhance banks' capital adequacy assessments.

The methodology leverages tractable simulations to estimate loss rates, incorporating debt-to-income ratios (DTIR) and geographic/credit quality segmentation. It aligns with regulatory needs for robust provisioning frameworks.