Basel Committee on Banking Supervision
On March 4, 2016, the Basel Committee on Banking Supervision finally updated its proposal for calculating operational risk capital, introducing the Standardized Measurement Approach (“SMA”). Building upon its 2014 version, the SMA would not only replace the existing standardized approaches, but also the Advanced Measurement Approach. Under the SMA, regulatory capital levels will be determined using a simple formulaic method which facilitates comparability across the industry.