Basel op risk plans 'not fit for purpose', say banks

SMA expected to raise capital charges, but lower standards in risk management

litter bin
Trashed: Basel Committee proposals to bin AMA panned by industry

Operational risk practitioners have expressed bitter disappointment with the Basel Committee on Banking Supervision's plans to remove op risk modelling from minimum bank capital rules, which were revealed on March 7.

In a long-awaited consultation, the committee proposed a new way of quantifying op risk capital, dubbed the standardised measurement approach (SMA). The method would replace all existing approaches to op risk capital, including the simpler standardised approaches and the advanced

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