Evaluating the AMA and the new standardized approach for operational risk capital

Marco Migueis

Journal of Banking Regulation, 2019, vol. 20, issue 4, No 2, 302-311

Abstract: Abstract Seven desirable properties for a capital framework are proposed, and the advanced measurement approach (AMA) and the new standardized approach (NSA) for operational risk capital are evaluated relative to them. The AMA is vulnerable to gaming, complex, and lacks comparability. The NSA lacks risk sensitivity and is unlikely to be appropriately conservative for US banks.

Keywords: Banking regulation; Basel standards; Regulatory capital; Operational risk; Internal models; Standardized approaches (search for similar items in EconPapers)
JEL-codes: G21 G28 G32 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1057/s41261-019-00095-z

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