Fears that methodology will be abandoned if firms don't speak up: BIS urges banks to use hybrid approach
BASEL, SWITZERLAND – Use the hybrid approach, or lose it, warns an official from the Bank for International Settlements, the parent organisation of the Basel Committee on Banking Supervision.
The official says if banks don't start submitting potential plans for using the hybrid approach to the world's regulators, this part of the advanced measurement approach (AMA) could be all-but-abandoned globally.
The so-called hybrid approach was first floated by the Basel Committee in January 2004's Principles for the home-host recognition of AMA operational risk capital. It allows banks to come
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