Op risk floor removed to give flexibility

So said the Basel Committee on Banking Supervision, the architect of the accord, in its July 10 statement announcing agreement on many of the outstanding issues relating to Basel II, which it wants to bring into force for major banks in late 2006. The decision to remove the op risk floor and instead create a single capital floor for credit risk and op risk for the first two years of the accord’s operation, was generally greeted favourably by bankers. Many had argued that the original op risk