Standardised approach may receive op risk charge cut, says ECB official

The operational risk charge related to the Basel II 'standardised approach' may be cut in the third consultative paper (CP3) due for release next month by the Basel Committee on Banking Supervision, according to Panagiotis Strouzas, a senior expert in the financial supervision division in the European Central Bank's Directorate of Financial Stability and Supervision.

Strouzas, a panellist at the Professional Risk Managers’ International’s (Prmia) inaugural 2003 European Summit in Paris today, described Congressional testimony by US officials earlier this year that indicated only a dozen or so US banks would adopt Basel II, as politically motivated. He said the matter was raised at a recent G7 summit and the indications following that meeting were that adjustments to the standardised approach in CP3 would likely address US concerns.

Strouzas said he had