TSA: Difference between revisions
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imported>Doug Williamson (Create the page. Source: PRA http://www.bankofengland.co.uk/pra/Documents/publications/sop/2015/p2methodologies.pdf) |
imported>Doug Williamson (Add link and example.) |
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The Standardised Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes. | 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% = £1.5m | |||
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*[[AMA]] | *[[AMA]] | ||
*[[ASA]] | *[[ASA]] | ||
*[[Beta]] | |||
*[[BIA]] | *[[BIA]] | ||
*[[Bank supervision]] | *[[Bank supervision]] | ||
Revision as of 11:19, 29 October 2016
Bank supervision - capital adequacy - operational risk.
Standardised Approach.
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% = £1.5m
