European Banking Federation Agrees To BIS Provisions For Rogue Traders, Computers

NEWS

BASLE--The European Banking Federation has accepted that banks will have to set aside extra capital to cover losses from rogue traders and computer failures.

In exchange the EBF suggested that, to counterbalance the extra capital required, lower capital requirements needed to be made to compensate for improved standards of credit risk management in operational risks. "We are in favour of developing an operational risk charge in conjunction with the Basle regulators," an EBF spokesperson said.