New Basel delay throws SMA into doubt

Revised op risk capital framework unlikely to be implemented uniformly, even when a deal is agreed, bankers say

In transit: new SMA rules may take longer to arrive than originally scheduled

A deal to salvage the revised operational risk capital framework has been thrown into doubt, with a crunch sign-off meeting of supervisory chiefs tentatively scheduled for next week set to be delayed once again. The new rules, which will see the current disparate approaches to calculating operational risk capital replaced by a standardised measurement approach (SMA) that removes banks’ freedom to model their own requirements, were designed to harmonise jurisdictional differences in capitalis