Capital charges not enough to protect banks against op risk, says Moody’s
Protective capital is an incomplete line of defence against operational risk and effective op risk measurement and management should amount to more than just a capital allocation exercise enforced by regulators, a leading credit rating agency said in June.
Moody’s said its focus on operational risk is becoming more central to its assessment of the credit worthiness of banks.
The agency said the risk-based Basel II capital accord, which from
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