CA-6.2.5
Gross income is defined as:
(a) Net income from financing activities which is gross of any provisions, operating expenses, realised profits/losses from the sale of securities in the banking book, and depreciation of Ijarah assets;
(b) Net income from investment activities; and
(c) Fee income (e.g. commission and agency fee)
Less;
Less;
(d) Investment account holders' share of income
(e) Takaful income
In case of a bank with negative gross income for the previous three years, a newly licensed bank with less than 3 years of operations, or a merger, acquisition or material restructuring, the CBB shall discuss with the concerned licensed bank an alternative method for calculating the operational risk capital charge. For example, a newly licensed bank may be required to use the projected gross income in its 3-year business plan. Another approach that the CBB may consider is to require such licensed banks to observe a higher CAR.
Apr 08