Basel III: final op risk framework leaves banks guessing

Analysis suggests big capital savings on average, but uncertainty persists over uneven implementation

Leeway given to national regulators has raised the prospect of a transatlantic divide

Final rules from global policymakers on operational risk capital appear to show a big cut for the largest banks – but the industry has been left guessing as to the ultimate impact by the unprecedented freedom given to national regulators over controversial elements of the framework.

A quantitative impact study (QIS) from the Basel Committee on the effect of its new operational risk framework, known as the standardised measurement approach (SMA) – published last week as part of the final package