Brexit may spur higher op risk losses – EBA

The top five operational risk losses incurred by European Union banks in 2018 cost €35.4 billion ($40 billion) in total, equivalent to 2.1% of their Common Equity Tier 1 (CET1) capital on average – and higher costs are expected next year, driven in part by Brexit uncertainty.   

Data published by the European Banking Authority (EBA) shows that the cost of op risks has increased year to year. In 2017, the five largest losses accounted for just 1.2% of EU banks’ CET1 on average.

Brexit fallout

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