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Version status: Repealed | Document consolidation status: Updated to reflect all known changes
Version date: 1 January 2014 - onwards
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Annex X Part 2 Standardised Approach

1. CAPITAL REQUIREMENT

1. The capital requirement for operational risk shall be calculated as the three-year average of the yearly summations of the capital requirements across business lines referred to in Table 2. In any given year, negative capital requirements (resulting from negative gross income) in any business line may offset positive capital requirements in other business lines without limit. However, where the aggregate capital requirements across all business lines within a given year are negative, the input to the numerator for that year shall be zero.

2. The three-year average is calculated on the basis of the last three twelve-monthly observations at the end of the financial year. When audited figures are not available, business estimates may be used.

Table 2

Business line

List of activitie

 Percentage

Corporate finance

Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis Services related to underwriting

I

Comparing proposed amendment...