European banks face steep op risk capital hike from SMA

Op risk accounts for 28% of US banks’ RWAs, compared with 12% at European banks

Mountain climbers
European banks could see their op risk RWAs climb sharply

European banks are expected to see steeper increases in risk-weighted assets (RWAs) for operational risk than their US counterparts under the Basel Committee on Banking Supervision's proposed standardised measurement approach (SMA) for calculating risk capital.

"Our initial estimates are that the impact on the US banks would not be very significant, and that's how we want it to be," says a regulatory source close to the Basel Committee.

The Basel Committee wants to replace the advanced

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: