87.Gross income, used in the Basic Indicator and Standardised Approaches for operational risk, is only a proxy for the scale of operational risk exposure of a bank and can in some cases underestimate the need for capital for operational risk. The Central Bank will consider whether the capital requirement generated by the Pillar 1 calculation gives a consistent picture of the individual bank’s operational risk exposure, for example in comparison with other banks of similar size and with similar operations. The use of Pillar 2 to charge capital for inadequacy in risk management may also be applied by the Central Bank.

88.A bank offering Islamic financial services must ensure that its operational risk management framework addresses any operational risks arising from potential noncompliance with Sharī’ah provisions and Higher Shari’ah Authority resolutions.