Four in five European banks don’t model their op risks
Less than 20% of European banks use models to calculate their operational risk capital requirements, data from the latest European Union-wide transparency exercise shows. Those that do, though, rely on them almost to the exclusion of all other methods.
Of 135 named banks from the EU, European Economic Area and the UK in the sample, just 23 had op risk-weighted assets generated using the advanced measurement approach (AMA), which uses banks’ own op risk models, as of end-June. The AMA was used
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