The Basel Committee on Banking Supervision (Basel Committee) has issued a consultative document setting out proposed revisions to the standardised approaches for calculating operational risk capital.

The Basel Committee’s review of banks’ operational risk modelling practices and capital outcomes revealed that the Advanced Measurement Approach’s (AMA) inherent complexity and the lack of comparability, have exacerbated variability in risk-weighted asset calculations, and eroded confidence in risk-weighted capital ratios. The Basel Committee is therefore proposing to remove the AMA from the regulatory framework and include the Standardised Method Approach which builds on the simplicity and comparability of a standardised approach, and embodies the risk sensitivity of an advanced approach.

The deadline for comments is 3 June 2016.

View BCBS consults on standardised measurement approach for operational risk, 4 March 2016