This paper conducts an empirical analysis with regard to those methodologies proposed by the Basle Committee for the estimation of the operational capital charge. More specifically, we compare an advanced measurement approach, as the Loss Distribution Approach (LDA), versus the so called...

The transposition of the European Directive on Basel II has been recently done by the Circular 3/2008 on Minimum Capital Requirements of the Bank of Spain. This new regulatory framework has encouraged the Spanish banking sector to evolve to sophisticated techniques for managing operational risk...