Standardised Approach: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Amend link.) |
imported>Doug Williamson (Layout.) |
||
| Line 1: | Line 1: | ||
''Bank supervision - capital adequacy - operational risk | ''Bank supervision - capital adequacy - operational risk'' | ||
(SA or TSA). | (SA or TSA). | ||
Revision as of 22:51, 22 November 2016
Bank supervision - capital adequacy - operational risk
(SA or TSA).
The Standardised Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes.
Under the standardised approach, gross income (GI) is multiplied by a coefficient (beta) to calculate the measure of risk weighted assets.
For example:
GI x beta = RWAs
£10m x 12% = £1.2m
The beta varies, according to the business line.
