Difference between revisions of "TSA"

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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.
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Under the standardised approach, gross income (GI) is multiplied by a coefficient (beta) to calculate the measure of risk weighted assets.
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For example:
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GI x beta = RWAs
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£10m x 12% = £1.5m
  
  
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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


See also