Regulator outlines AMA issues for US banks

In a late-July speech at a Risk Waters Group forum on the US's advance notice of proposed rulemaking, the Federal Reserve's Kirk Odegard described how the US would be implementing the advanced measurement approach for op risk, and outlined regulators' concerns.

"In the US, we only plan to adopt the advanced measurement approach (AMA) for operational risk. In the Basel Committee on Banking Supervision's third consultative paper (CP3), there are the basic indicator, standardised and alternative standardised approaches, which we will not be adopting in the US. For mandatory banks, we will only be adopting the AMA. There will be roughly 10 mandatory banks that meet the criteria set forth in the government's advance notice of proposed rulemaking (ANPR)