Could the Basel II op risk charge be cut again?

BASEL - Might banking regulators agree again to lower the capital charge for operational risk proposed under the controversial Basel II bank capital accord as part of horse-trading over the credit risk charge?

The question arose for some bankers after the Basel Committee on Banking Supervision, the architect of Basel II and the body that in effect regulates international banking, confirmed their fears in November that currently proposed Basel II credit risk charges would be higher for many banks than they are under the Basel I accord.

The idea of a compromise involving a further cut in the op risk charge has a certain deal-maker’s logic about it, regulators said. But a strong objection is that it

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The changing shape of risk

S&P Global Market Intelligence’s head of credit and risk solutions reveals how firms are adjusting their strategies and capabilities to embrace a more holistic view of risk

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here