BIA: Difference between revisions

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The Basic Indicator Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes.
The Basic Indicator Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes.
Under the BIA, gross income (GI) is multiplied by a coefficient (alpha) to calculate the measure of risk weighted assets.
For example:
GI x alpha = RWAs
£10m x 15% = £1.5m
The alpha is standardised across all business lines.
This weighting factor is also sometimes known as 'beta'.




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*[[ASA]]
*[[ASA]]
*[[Bank supervision]]
*[[Bank supervision]]
*[[Basic indicator approach]]
*[[Capital adequacy]]
*[[Capital adequacy]]
*[[Internal Models Approach]]
*[[Internal Models Approach]]
*[[Operational risk]]
*[[Operational risk]]
*[[Risk weighted assets]]
*[[Risk Weighted Assets]]
*[[TSA]]
*[[Standardised Approach]]  (SA or TSA)
 
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]

Latest revision as of 19:56, 25 June 2022

Bank supervision - capital adequacy - operational risk.

Basic Indicator Approach.

The Basic Indicator Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes.


See also