The autumn 2014 joint committee report on risks and vulnerabilities in the EU financial system, produced by the three European supervisory agencies, flagged "rising and increasingly materialising concerns relating to operational risks" after a wave of bank fines related to misconduct. The report identified remediation for the mis-selling of financial products and penalties for manipulating financial benchmarks as two of the greatest sources of concern. Just weeks later, the Basel Committee on Banking Supervision (BCBS) produced a consultation on revising standardised approaches for calculating the capital that banks must hold against operational risks. The BCBS noted that a study in 2010 had shown "that banks' operational risk capital levels under the current Basel framework were on average already undercalibrated in 2009. Moreover, capital needs for operational risk were found to be increasing in a non-linear fashion with a bank's size."
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