Banks Act, 1990 (Act No. 94 of 1990)RegulationsRegulations relating to BanksChapter II : Financial, Risk-based and other related Returns and Instructions, Directives and Interpretations relating to the completion thereof33. Operational risk: six-monthly returnDirectives and interpretations for completion of six-monthly return concerning operational risk (Form BA 400)Subregulation (10) Instructions relating to the completion of the return are furnished with reference to certain item descriptions and line item numbers appearing on the form BA 400 |
| (10) | Instructions relating to the completion of the return are furnished with reference to certain item descriptions and line item numbers appearing on the form BA 400, as follows: |
Line item
number
| 8 | Adjusted prior period errors |
In respect of any relevant item affecting gross income, this item shall reflect the aggregate amount of errors, omissions or misstatement of amounts in respect of a reporting period preceding the current reporting period.
| 11 | Based on the relevant requirements specified in subregulation (7) the reporting bank shall calculate its relevant required amount of capital and reserve funds in terms of the basic indicator approach. |
| 12 to 20 | Based on the relevant requirements specified in subregulation (8) the reporting bank shall calculate its relevant required amount of capital and reserve funds in terms of the standardised approach. |
| 21 to 25 | Based on the relevant requirements specified in subregulation (8)(c)(ii) the reporting bank shall calculate its relevant required amount of capital and reserve funds in terms of the alternative standardised approach. |
26 and
| 29 to 37 | Based on the relevant requirements specified in subregulation (9) the reporting bank 29 to 37 shall, amongst other things, calculate its relevant required amount of capital and reserve funds in terms of the advanced measurement approach. |
| 28 | A bank shall convert its required amount of capital and reserve funds for operational risk reported in item 27 to the required risk weighted asset equivalent amount through the application of the formula specified below: |
RWE = K x 12,5
where:
| RWE | is the required risk weighted asset equivalent amount |
| K | is the required amount of capital and reserve funds for operational risk reported in item 27. |
| 38 and 39 | Based on the relevant requirements specified in subregulation (9) and the bank's relevant annual aggregate loss distribution constructed during the relevant period, a bank that obtained the approval of the Registrar to adopt and apply the advanced measurement approach shall complete the required information specified in items 38 and 39. |
Columns relating to items 11 to 25
| 7 | Based on the relevant requirements specified in subregulations (7) and (8), this column 7 shall reflect the relevant risk exposure amount. |