B. Standardised Approach
C 52/2017 STA يسري تنفيذه من تاريخ 1/4/20211- Below is small example indicated which to include and exclude in the gross income:
| Included | Excluded |
| Provisions | Profits/losses from sale of securities |
| Operating expenses | Extraordinary/ irregular items |
Gross income for each business line should:
- -Be gross of any provisions (for example, for unpaid interest).
- -Be gross of operating expenses, including fees paid to outsourcing service providers.
- -Exclude realised profits/losses from the sale of securities in the banking book.
- -Exclude extraordinary or irregular items as well as income derived from insurance claims.
2- The following table shows how to calculate the capital charge for operational risk using the Standardised Approach:
| Business line | Beta factor | Gross income | Capital requirement | |||||
| Year 1 | Year 2 | Year 3 | Year 1 | Year 2* | Year 3 | Average | ||
| Corporate finance | 18% | 250 | 300 | 200 | 45 | 54 | 36 | |
| Trading and sales | 18% | 100 | -70 | -80 | 18 | -12.6 | -14.4 | |
| Retail banking | 12% | 500 | 200 | -300 | 60 | 24 | -36 | |
| Commercial banking | 15% | 400 | 300 | 400 | 60 | 45 | 60 | |
| Payment and settlement | 18% | 300 | 350 | 300 | 54 | 63 | 54 | |
| Agency services | 15% | 75 | 50 | 45 | 11.25 | 7.5 | 6.75 | |
| Asset management | 12% | 50 | -100 | -20 | 6 | -12 | -2.4 | |
| Retail brokerage | 12% | 150 | 100 | 80 | 18 | 12 | 9.6 | |
| Total Gross Income | 1,825 | 1,130 | 625 | |||||
| Aggregate Capital Requirement** | 272.25 | 180.9 | 113.55 | 189*** | ||||
*Gross Income x Beta factor
**Sum of eight capital charges for the year – remember within a year negative capital charges can offset positive charges among business lines
***Three-year average capital charge
3- Another example to illustrate the negative Gross income:
*Total capital charge against all business lines for year 2 is negative (-17.1), so the numerator for year 2 is set to zero
**Capital charge averaged for three years, with the numerator for year 2 set to zero