CA-7.1.4
KBIA = [∑(GI1.nα)]/n
where:
KBIA = the capital charge under the Basic Indicator Approach
GI = annual gross income, where positive, over the previous three years (audited financial years)
n = number of the previous three years for which gross income is positive
α = 15%, relating the industry wide level of required capital to the industry wide level of the indicator.
37 If negative gross income distorts a bank's Pillar 1 capital charge, CBB will consider appropriate supervisory action.