Hong Kong Regulations

BANKING (CAPITAL) RULES - SECT 24

Authorized institution shall only use BIA approach, STO approach or ASA approach to calculate its operational risk

Division 6—Prescribed approaches to calculation of operational risk

(1) An authorized institution—

   (a)  subject to paragraphs (b) and (c), shall use the BIA approach to
        calculate its operational risk;

   (b)  subject to section 26, may use the STO approach to calculate its
        operational risk only if it has the approval to do so under section 
        25 (2)(a);

   (c)  subject to section 26, may use the ASA approach to calculate its
        operational risk only if it has the approval to do so under section 
        25 (2)(a).

(2) Subsection (1) does not prevent an authorized institution from using any
combination of the BIA approach, STO approach and ASA approach to calculate
its operational risk if that combination is expressly permitted by, and in
accordance with, another section of these Rules.