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1. b) Bank XYZ has had the following gross profit (loss) results from its only three business lines for the past three years (amounts in
1. b) 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 Year 1 Year 2 Year 3 Trading & Sales 125 100 (100) Payment & Settlement 75 (500) 200 Corporate Finance (250) 50 150 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. 1. b) 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 Year 1 Year 2 Year 3 Trading & Sales 125 100 (100) Payment & Settlement 75 (500) 200 Corporate Finance (250) 50 150 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
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