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  • Risk-weighted Assets

    • CA-A.3.6

      Total risk-weighted assets are determined by:

      (a) Multiplying the capital requirements for market risk and operational risk by 12.5; and
      (b) Adding the resulting figures to the sum of risk-weighted assets for credit risk.
      Amended: January 2011
      Apr 08

    • CA-A.3.7

      For the measurement of their credit risks, banks have a choice, subject to the written approval of the CBB, between two broad methodologies:

      (a) One alternative is to measure the risks in a standardised approach, applying the measurement framework described in Chapter CA-3 of this Module; and
      (b) The second methodology (i.e. internal ratings-based approach) is set out in detail in Chapter CA-5 including the procedure for obtaining the CBB's approval. This methodology is subject to the fulfilment of certain conditions. The use of this methodology is, therefore, conditional upon the explicit approval of the CBB.
      Amended: April 2011
      Amended: January 2011
      Apr 08

    • CA-A.3.8

      Credit risk — Securitization framework is set out in Chapter CA-6. Banks must apply the securitisation framework for determining regulatory capital requirements on exposures arising from traditional and synthetic securitisations or similar structures that contain features common to both.

      Amended: January 2011
      Apr 08

    • CA-A.3.9

      For the measurement of their operational risks, banks have a choice, subject to the written approval of the CBB, between two broad methodologies:

      (a) One alternative is to measure the risks in a basic indicator approach, applying the measurement framework described in Chapter CA-7 of this Module; and
      (b) The second alternative methodology (i.e. the standardised approach) is set out in detail in Chapter CA-7 including the procedure for obtaining the CBB's approval. This methodology is subject to the fulfilment of certain conditions (as outlined in Module OM).The use of this methodology is, therefore, conditional upon the explicit approval of the CBB.
      Amended: January 2011
      Apr 08

    • CA-A.3.10

      For the measurement of their market risk, banks have a choice, subject to the written approval of the CBB, between two broad methodologies:

      (a) One alternative is to measure the risks in a standardised approach, applying the measurement frameworks described in Chapters CA-9 to CA-13 of this Module; and
      (b) The second alternative methodology (i.e. the internal models approach) is set out in detail in Chapter CA-14 including the procedure for obtaining the CBB's approval. This methodology is subject to the fulfilment of certain conditions. The use of this methodology is, therefore, conditional upon the explicit approval of the CBB.
      Amended: April 2011
      Amended: January 2011
      Apr 08