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.
Supervisors must be willing to say that the size of the capital charge for operational risk under AMA to some extent will depend on the development of industry practice and the experience and associated consensus that will evolve over time. In the interim, supervisors will need to engage banks in discussions about the likely size of their operational risk capital requirements.