Regulatory Arbitrage in the Use of Insurance in the New Standardized Approach for Operational Risk Capital

Basel's new standardized approach (SA) for operational risk capital may allow for regulatory arbitrage through the use of insurance. Under the SA, banks will have incentive to insure recurring losses, which can meaningfully reduce capital requirements even as it does not meaningfully decrease tail operational loss exposure. Several alternatives to deal with this regulatory arbitrage strategy are discussed

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Year of publication:	2019
Authors:	Migueis, Marco
Publisher:	[2019]: [S.l.] : SSRN
Subject:	Basler Akkord \| Basel Accord \| Theorie \| Theory \| Versicherung \| Insurance \| Regulierung \| Regulation \| Arbitrage \| Operationelles Risiko \| Operational risk \| Risikomanagement \| Risk management

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Extent:	1 Online-Ressource (9 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 12, 2019 erstellt
Other identifiers:	10.2139/ssrn.3485866 [DOI]
Classification:	G21 - Banks; Other Depository Institutions; Mortgages ; G28 - Government Policy and Regulation ; G32 - Financing Policy; Capital and Ownership Structure
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012859534