Banks still nervous about gross income as an op risk indicator
BASEL - Banks seem pleased with many aspects of the recent working paper on operational risk issued by global banking regulators, but are still nervous about some of the cross-border anomalies that could be thrown up by the use of gross income as a risk indicator, bank regulators said.
The working paper embodied the Basel regulators’ refinements of their plans to require major banks to set aside reserve capital from 2005 against the risk of loss from the operational hazards of banking under the complex and risk-based Basel II bank capital accord.
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