Capital securities and Standardised Approach: Difference between pages

Latest revision as of 02:31, 31 January 2024

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.

@@ Line 1: / Line 1: @@
-''Bank supervision - capital adequacy''.
+''Bank supervision - capital adequacy - operational risk''.
-Capital securities are securities issued by a regulated institution, which are eligible for inclusion in its capital, for capital adequacy assessment purposes.
+(SA or TSA).
+The Standardised Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes.
-Both the quality and the quantity of capital required have been increased very significantly over time.
-Eligible capital securities include perpetual subordinated capital securities and contingent convertible capital securities.
+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.
 ==See also==
-*[[Capital]]
+*[[AMA]]
+*[[ASA]]
+*[[Basel III Endgame]]
+*[[Beta]]
+*[[BIA]]
+*[[Bank supervision]]
 *[[Capital adequacy]]
-*[[Contingent convertible capital]]
+*[[Internal Models Approach]]
-*[[Hybrid]]
+*[[Operational risk]]
-*[[Instrument]]
+* [[Risk Weighted Assets]]
-*[[Perpetual bond]]
-*[[Security]]
-*[[Subordinated debt]]
 [[Category:Accounting,_tax_and_regulation]]
-[[Category:The_business_context]]
+[[Category:Identify_and_assess_risks]]
+[[Category:Manage_risks]]
+[[Category:Risk_reporting]]
+[[Category:Risk_frameworks]]