Operational risk news and analysis articles - Risk.net

A new discussion paper on operational risk has been published, but with many banks in Asia still struggling with non-performing loans, some bankers question the ability of troubled banks to cope with this charge. AsiaRisk investigates.

01 Oct 2001

Technology

Preparing for the worst

Small and medium-sized banks in the US and Europe are bracing themselves for Basel II. Gallagher Polyn examines how these institutions plan to adapt to the new Accord.

01 Oct 2001

Basel Committee

Basel regulators cut op risk charge benchmark to 12%

BASEL - Global banking regulators formally acknowledged in late September some of the criticisms of their controversial proposal for an op risk capital charge. Their plan is to make large international banks set aside protective capital from 2005…

01 Oct 2001

Structured products

EU welcomes Basel regulators' op risk paper

BRUSSELS - The European Commission, the ruling body of the European Union, welcomed the decision of global banking regulators to reduce the benchmark for an op risk capital charge to 12% from 20%, said a commission spokesman.

01 Oct 2001

Credit risk

Basel inflicts collateral damage

The current Basel proposals could lead to the global spread of the type of systemic loan loss problems Japan is now experiencing, argues John Frye of the Federal Reserve Bank of Chicago.

01 Oct 2001

Operational risk

Advanced measurement approaches

The September working paper on operational risk from the Basel Committee on Banking Supervision confirmed that global banking regulators are looking at a range of advanced ways of calculating op risk capital charges instead of a single method.

01 Oct 2001

Basel Committee

Pro-cyclicality in the new Basel Accord

Could Basel II worsen recessions? By backtesting the proposed capital rules to the last recession, D. Wilson Ervin and Tom Wilde argue that the increased risk sensitivity of loan portfolio regulatory capital in the new Accord could have unwelcome…

01 Oct 2001

Risk management

New op risk paper gets cautious welcome, but reservations remain

BASEL - Bankers gave a cautious welcome to the further thinking of global banking regulators on their controversial plans to make internationally active banks set aside capital against op risk under the Basel II banking accord.