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

  • Marco MigueisEmail author
Original Article

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 

JEL Classification

G21 G28 G32 

Notes

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Copyright information

© This is a U.S. Government work and not under copyright protection in the US; foreign copyright protection may apply 2019

Authors and Affiliations

  1. 1.WashingtonUSA

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