Dexia rejected AMA over uncertain capital relief

Public finance specialist rejected AMA prior to break-up, finding capital benefit might not offset costs, but fellow Belgian bank BNP Paribas Fortis argues in favour of op risk modelling

Banking group Dexia decided not to adopt the advanced measurement approach (AMA) last year after concluding the prospective capital benefits were unclear – one of the findings of an in-house study that also argued the operational risk community is questioning the efficiency of the loss data approach.

"Last year, the opportunity for Dexia to move from the standardised approach to the AMA for operational risk management was examined. The final proposal was not to do it for a number of reasons