What the banking industry (and others) told the Basel regulators

The Central Bank of the United Arab Emirates said the op risk capital charge may be left to the discretion of the national supervisor, and should be based not only on quantitative factors, but should take account of qualitative factors. The Central Bank of Sri Lanka said the basic indicator and standardised approaches seemed inconsistent with the main objective of Basel II, namely the enhancing of competitive equality with the more risk-sensitive capital requirements. The bank suggested the capital charge for op risk be specified by the supervisor based on supervisory review under pillar two of Basel II.

The Central Bank of Malta noted reputational risk was not included in the Basel II definition. Although difficult to measure, reputational risk could have significant adverse effects which far outweigh the actual losses arising from operational risk and this should not be ignored.

The Bank of Thailand said since Basel II defines operational risk to include legal risk, the definition should be sufficiently clear to prevent any additional capital charge arising from difficulties in

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here