The paper investigate the lobbying affords in the financial sector in US and observing the risks that might appeared thorough lobbying the legislations in the Basel regulatory framework. I was looking for the changes in lobbying activities connected with the changes in the Basel framework regulations as well as I wanted to look at the historical volatility of lobbying and through the regression analysis try to build a prognoses for the future development of the sector.
In my report I was motivated to find out the real impact for the Banks from the Operational risk regulatory framework and from the recommendations of the Basel committee in the studying of operational risk impact. This is not a criticism of the practical implementation in work but an invitation to hold the eyes open on the real situation. In this article the theory and practical work description with risk indicators, risk scenario planning, and ways of external data extrapolation. In conclusion there are several questions of the Operational risk and the main issues in the interpretation of external rules and regulations internally.1 Bank of Italy [1] Citation: Maxim T (2014) Real Impact from the Basel 2 and Basel 2,5 for the Single Bank and How Possible to Reduce the Misunderstanding in Recommendations. Int J Econ Manag Sci 3: 186. doi: 10.4172/2162-6359.1000186 Page 2 Operational risks includes next risk categories:• frauds (internal and external);• employee's relations and safety of the workplaces;• natural damage of actives;• business and system failure;This discipline focused on people, systems, processes, natural geographical areas and others factors which are influenced the operational cycle of the Company. Methods and ModelsThere are 3 main methods of Capital adjustments calculation in the operation risk 2 :• Basic Approach -based on annual revenue of the financial institution. Among three methods assigned -this is the simplest one and is recommended for the Banks with small share of international activities. In calculation used estimations of average income for the last 3 years. 15% of value received is the Capital adjustment for the operational risk. This method excludes any year with negative or 0 income performance.• Standardized Approach -this approach gives the partial degree of flexibility, divided by different activities involved. Range of beta coefficients from 12,5% up to 18%, applying to each business lines: corporate finance -18%; trading and sales -18%; retail banking -12%; commercial banking -15%; payments and settlement -18%; agency service -15%; asset management -12%; retail brokerage -12%. Average in 3 years annual gross income in each business line multiplied by beta assigned to each correspondent line. Negative capital charged in any business line may well offset positive capital charges in other business lines. To apply this approach Bank should have: board of directors actively involved in oversight of the operational risk management framework; a conceptual operational risk management system; sufficient recourses in the major business lines as well as audit control in these systems.• Advanced Measurement Approach -allows the usage of internal empirical risk measurement model for the financial institution. This model is a subject of regulatory approval. Once bank adopt an AMA approach it won't be able to revert this approach to the simpler one without supervisory approval. The minimal requirement for AMA approach usage is similar to the standardized approach. This method in...
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