An upcoming switch to the operational risk framework will have a more subdued effect on big banks’ capital requirements than previously estimated, a Basel Committee study shows.

The median global systemically important bank (G-Sib) is expected to see its op risk capital decrease 5.1% when the revised standardised approach (SA) is implemented in 2022, based on end-2017 data. This is a far milder effect than the 19% decrease estimated using end-2015 data in an earlier study.

Big banks