| (4) | For the measurement on a consolidated basis of a bank or controlling company's aggregate risk-weighted exposure as contemplated in sections 70A of the Act, the bank or controlling company, as the case may be— |
| (a) | shall at the discretion of the relevant bank or controlling company, subject to the relevant requirements specified in subregulation (3), use one of the alternative methodologies specified below to determine its exposure to credit risk: |
| (i) | The standardised approach, using one of the alternative frameworks prescribed in regulation 23(5) read with the relevant requirements specified in regulations 23(6) and 23(8); or |
| (ii) | Subject to the prior written approval of the Registrar and such conditions as may be specified in writing by the Registrar, the IRB approach, using one of the alternative frameworks prescribed in regulation 23(10) read with the relevant requirements specified in regulations 23(11) and 23(13); |
| (iii) | Subject to the prior written approval of the Registrar and such conditions as may be specified in writing by the Registrar, a combination of the approaches envisaged in subparagraphs (i) and (ii) above; |
| (b) | shall at the discretion of the relevant bank or controlling company, subject to the relevant requirements specified in subregulation (3), use one of the alternative methodologies specified below to determine its exposure to counterparty credit risk: |
| (i) | The standardised approach specified in regulation 23(18); |
| (ii) | Subject to the prior written approval of and such further conditions as may be specified in writing by the Authority, the internal model method specified in regulation 23(19); |
| (iii) | Subject to the requirements specified in regulation 23(15), the prior written approval of and such further conditions as may be specified in writing by the Authority, a combination of the approaches specified in subparagraphs (i) and (ii) above; |
[Regulation 36(4)(b) substituted by section 7(e) of Notice No. 1427, GG44048, dated 31 December 2020 - effective 1 January 2021]
| (c) | shall at the discretion of the relevant bank or controlling company, subject to the relevant requirements specified in subregulation (3), use one of the alternative methodologies specified below to determine its exposure to market risk: |
| (i) | The standardised approach prescribed in regulation 28(7); or |
| (ii) | Subject to the fulfilment of specified quantitative and qualitative requirements, the prior written approval of and such further conditions as may be specified in writing by the Registrar, the internal models approach specified in regulation 28(8); |
| (iii) | Subject to the prior written approval of and such further conditions as may be specified in writing by the Registrar, a combination of the approached specified in subparagraphs (i) and (ii) above; |
| (d) | shall at the discretion of the relevant bank or controlling company, subject to the relevant requirements specified in subregulation (3), use one of the alternative methodologies specified below to determine its exposure to operational risk: |
| (i) | The basic indicator approach specified in regulation 33(7); |
| (ii) | Subject to the prior written approval of and such conditions as may be specified in writing by the Registrar the standardised approach or alternative standardised approach specified in regulation 33(8); |
| (iii) | Subject to the prior written approval of and such conditions as may be specified in writing by the Registrar, the advanced measurement approach prescribed in regulation 33(9), provided that when the bank or controlling company wishes to apply the allocation mechanism envisaged in regulation 33(9)(c) the bank or controlling company, as the case may be, shall obtain the prior written approval of the Registrar and the relevant host supervisor. |
| (i) | the approach adopted by the relevant bank or controlling company for the measurement of its exposure to credit risk, as envisaged in paragraph (a) above; |
| (ii) | such conditions as may be specified in writing by the Registrar, |
use one of the alternative approaches specified below to determine the bank or controlling company's exposure in respect of a securitisation scheme:
| (A) | the standardised approach specified in regulation 23(5) read with the relevant provisions specified in regulations 23(6), 23(8) and 38(7); |
| (B) | the IRB approach using one of the alternative frameworks specified in regulation 23(10) read with the relevant requirements specified in regulations 23(11), 23(13) and 38(7). |
| (5) | Unless specifically otherwise provided in this regulation 36 or specified in writing by the Registrar, all the relevant directives and interpretations— |
| (a) | relating to the completion on a solo basis of the relevant risk-based returns by a bank; or |
| (b) | for the calculation on a solo basis of the relevant minimum required amount of capital and reserve funds of a bank, |
shall mutatis mutandis apply to the completion of the consolidated return or calculation of the minimum required consolidated amount of capital and reserve funds to be held by a bank or controlling company.
