Op risk capital charge difficult to devise in imperfect Basle II, says US central banker

BASLE II UPDATE

NEW YORK -- The lack of an agreed methodology and credible loss data has made it extremely difficult to devise an operational capital risk charge under the terms of the Basle II bank capital accord, a senior US central banker acknowledged in mid-October.

It has resulted in banks being permitted to use their own internal measurement approaches to calculating an op risk capital charge, subject to quantitative and qualitative criteria and a minimum capital charge, Laurence Meyer, a board member of