Bank XYZ has had the following gross profit (loss) results from its only three business lines...

 

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Bank XYZ has had the following gross profit (loss) results from its only three business lines for the past three years (amounts in $millions): Business Line Trading & Sales Payment & Settlement Corporate Finance Year 1 125 75 (250) Year 2 100 (500) 50 Year 3 (100) 200 150 Required: Compute the operational risk regulatory capital for Bank XYZ using the Basic Indicator Approach (BIA) and the Standardised Approach (TSA). Provide a brief comment on your results. Bank XYZ has had the following gross profit (loss) results from its only three business lines for the past three years (amounts in $millions): Business Line Trading & Sales Payment & Settlement Corporate Finance Year 1 125 75 (250) Year 2 100 (500) 50 Year 3 (100) 200 150 Required: Compute the operational risk regulatory capital for Bank XYZ using the Basic Indicator Approach (BIA) and the Standardised Approach (TSA). Provide a brief comment on your results.

Answer rating: 100% (QA)

Basic Indicator Approach can be calculated by adding the positive gross profits over the ... View the full answer