Framework for Minimum Capital Requirements for Operational Risk in comparison with Operational Risk Losses: analysis of Dipo data

An analysis of Dipo (Italian Database for Operational Losses) data shows that the current regulatory requirements in terms of capital loss absorption capacity are prudent and sound. As a result, an indiscriminate increase in minimum capital requirement for operational risk does not seem necessary and a more persuasive and internationally coordinated supervisory action could be more effective.