Avoid one-size-fits-all capital approach, says Osfi’s Zelmer


When the Basel Committee on Banking Supervision published a consultation on its fundamental review of the trading book in May 2012, risk managers reacted with dismay to a suggestion that a reliance on internal models to calculate risk-weighted assets is a problem that needs to be fixed. It proved to be the first of several papers raising concerns about the complexity of bank models, and mooting a return to simple, easy-to-understand measures.  That sentiment largely drove proposed change