INTM267742 - Foreign banks trading in the UK through permanent establishments: The approach in determining an adjustment to funding costs - STEP 2: Risk weighting the assets - the Basel II regulatory regime: Pillar 1 - the basic indicator approach to operational risk
The indicator under this approach is the sum of the bank바카라 사이트™s net interest income plus its net non-interest income as defined at 바카라 사이트śPrudential sourcebook for Banks, Building Societies and Investment Firms바카라 사이트ť (BIPRU) 6.3.6 R. The bank is required to hold capital to support operational risk in an amount equal to its average gross income over the three previous years of a fixed percentage of positive gross income. The Prudential Regulation Authority (PRA) sets a percentage of 15%.