Credit rating agency places new emphasis on using op risk as a rating element

Editor's blog

Fitch Ratings has introduced a new quantitative tool aimed at enhancing its analysis of bank regulatory capital adequacy. At the moment it only captures credit risk, but the final version will include high-level data for market and operational risk. The Fitch report, 'Regulatory Capital Ratios: A Case Study' highlights the danger that the relative share of capital for operational risk could increase given the high incidence of fraud, hasty mergers of financial institutions, unwinding of complex

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