Op risk economic capital is 15%, says BIS study

Banks allocate an average of 15% of their economic capital for operational risk, according to a study released today by the Bank for International Settlements (BIS).

The study, called the loss data collection exercise, is in its third year. It is based on information collected in 2002 and shows that of the 47 banks that provided information on economic capital, the amount of economic capital in each business line varied considerably. Retail banking received the highest portion, 45.5%, while Agency Services received the lowest, 6.52%.

The BIS said 89 banks participated in the 2002 edition, compared with 30 in the 2001 version of the survey. More banks

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