US Comptroller wants attractive advanced approaches to op risk

The best way of resolving arguments about whether operational risk capital charges are suitable for banks is to make advanced op risk measurement approaches, such as the scorecard method, attractive to banks, US Comptroller of the Currency John Hawke said in early April.

Hawke, who has often argued against proposals by global banking regulators to make major banks set aside capital to guard against losses from op risks, said there is a lot of potential in the advanced approaches for producing capital charges that relate more accurately to the risks actually faced by banks.

He told Operational Risk he now has hopes of "a good resolution" of outstanding issues, although he feels the advanced approaches still need refining to make them attractive options for