Framework developed for German banks

These regulatory regimes, scheduled to take effect in 2006/7, stipulate for the first time a specific capital charge for operational risk. Up until now, German banks’ prime focus, as that of many financial institutions around the globe, has been on credit risk.

But several of the country’s banking associations, which play a prominent role in its highly fragmented banking sector and often provide expertise and IT-support for their members, are working on assembling operational risk management

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