Basel II op risk floor abandoned

Global banking regulators said today they would eliminate the floor on capital charges under the advanced approaches to measuring operational risk in the Basel II bank accord.

Previously the Basel Committee on Banking Supervision had proposed that the op risk capital charge for banks using advanced approaches could not fall below 75% of the charges as calculated using the simpler, standardised approach.

Some bankers and banking industry analysts had criticised the floor on the grounds that it provided little incentive to banks to adopt the more advanced approaches – key aim of the Basel II bank capital adequacy accord.

The Basel Committee, the body that effectively

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