ASA: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create the page. Source: PRA http://www.bankofengland.co.uk/pra/Documents/publications/sop/2015/p2methodologies.pdf) |
imported>Doug Williamson (Expand.) |
||
| Line 3: | Line 3: | ||
Alternative Standardised Approach. | Alternative Standardised Approach. | ||
The Alternative Standardised Approach is a method of evaluation of certain operational risks | The Alternative Standardised Approach is a method of evaluation of certain operational risks, for capital adequacy calculation purposes. | ||
The ASA may be used by certain banks whose business is predominantly retail and commercial banking. | |||
Under the alternative standardised approach, the nominal amount of loans and advances is multiplied by a fixed percentage to calculate the measure of risk weighted assets. | |||
For example: | |||
Nominal amount x 3.5% = RWAs | |||
£1,000m x 3.5% = £35m | |||
Revision as of 11:33, 29 October 2016
Bank supervision - capital adequacy - operational risk.
Alternative Standardised Approach.
The Alternative Standardised Approach is a method of evaluation of certain operational risks, for capital adequacy calculation purposes.
The ASA may be used by certain banks whose business is predominantly retail and commercial banking.
Under the alternative standardised approach, the nominal amount of loans and advances is multiplied by a fixed percentage to calculate the measure of risk weighted assets.
For example:
Nominal amount x 3.5% = RWAs
£1,000m x 3.5% = £35m
