Basel III heralds 41% op risk jump for EU banks
Capital requirements set to rise almost 88% for those G-Sibs that don’t currently use the AMA
Revised rules for calculating operational risk will cause European Union banks’ capital requirements to surge by 40.5% from end-2020 levels, data from the European Banking Authority (EBA) shows.
As part of the Basel III reforms, banks worldwide will have to discontinue the use of the advanced measurement approach (AMA) by 2028 and assess operational risk exclusively through a new standardised measurement approach (SMA).
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Op risk Tier 1 capital charges are expected to jump 43.5% for
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