All things considered, the prospects are good for the UK making a successful entry into EMU somewhere in the first few years of the 21st century. The British Government’s commitment to membership of EMU, and their refusal to adopt a wait-and-see attitude can be regarded advantageous. In the meantime, the British should have a say in matters.
We believe that these methodologies and the resulting capital allocations for operational risk may be indicative of what we are likely to see once the new rules come into effect.