RBI reverts to standardised op risk modelling to smooth out charges
Austrian bank hopes switch away from AMA to temper requirements’ sensitivity to legal provisions
Raiffeisen Bank International (RBI) shelved internal modelling of operational risk last quarter in a bid to make capital charges less sensitive to flurried provisioning for legal claims such as the one brought forward by foreign-currency mortgagees in Poland.
After receiving approval by regulators in mid-December – according to a spokesperson – the Austrian lender retired its advanced measurement approach (AMA) model, meaning all of its €12.7 billion op risk-weighted assets (RWAs) as of the end
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