Calculate the capital charge for operational risk using the Standardized Approach with the Three-Year Average (TSA) method for a bank with the following annual gross income (GI) data and beta factors for 8 business lines:

 

Annual Gross Income (GI) Data:

 

Year 1: GI: $100,000,000

Year 2: GI: $120,000,000

Year 3: GI: $140,000,000

Beta factors for 8 business lines:

 

Corporate Finance: β = 18%

Trading and Sales: β = 18%

Retail Banking: β = 12%

Commercial Banking: β = 15%

Payment and Settlement: β = 18%

Agency Services: β = 15%

Asset Management: β = 12%

Retail Brokerage: β = 12%

For simplicity, we assume that the GI is evenly distributed across all 8 business lines for each year.

Thus, this bank is required to hold a minimum of $____________ in regulatory capital to cover the operational risk exposure.