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BIS issues principles for home-host recognition of AMA; changes securitisation framework

Significant subsidiaries of international banks will be able to calculate Advanced Measurement Approach (AMA) capital requirements using a mixed approach, according to the Basel Committee.

In a statement released on January 30, the Committee said international banks using the AMA operational risk measurements will be permitted to use a combination of stand-alone AMA calculations for significant internationally active banking subsidiaries, and an allocated portion of the group-wide AMA capital requirement for its other internationally active subsidiaries.

“The Committee is

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