Weary recognition of gross income as Basel II op risk measure
LONDON - There was "weary recognition" among bankers that the use of gross income as a measure of operational risk was the least bad approach, said Richard Metcalfe, co-head of the European office of the International Swaps and Derivatives Association (Isda). He was addressing the London OpRisk 2002 conference in January.
Insensitive measure
Panellists criticised the use of bank gross income as the basis for an op risk capital charge because of its insensitivity as a measure of the op risk actually faced by a bank.
Under proposals by the Basel Committee on Banking Supervision
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