Objectives of an efficient payments system In taking on a project like this, it’s useful to start off with some idea of the characteristics we’re looking to promote in an efficient payments system.
Against that background, reviewing the Committee's thinking that led to the proposed treatment of operational risk might be useful. Under the current, Basel I capital regime, capital requirements on credit exposures are set high enough to cover implicitly operational risk, an approach that has helped to undermine Basel I by adding to the wedge between regulatory and market evaluations of lower-risk exposures.