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 Code of Federal Regulations (Last Updated: May 6, 2024)
 Title 12 - Banks and Banking
 Chapter II - Federal Reserve System
 SubChapter A - Board of Governors of the Federal Reserve System
 Part 217 - Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks (Regulation Q)
 Subpart E - Risk-Weighted Assets - Internal Ratings-Based and Advanced Measurement Approaches
 Risk-Weighted Assets for Operational Risk

  § 217.162 - Mechanics of risk-weighted asset calculation.  

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  • § 217.162 Mechanics of risk-weighted asset calculation.

    (a) If a Board-regulated institution does not qualify to use or does not have qualifying operational risk mitigants, the Board-regulated institution's dollar risk-based capital requirement for operational risk is its operational risk exposure minus eligible operational risk offsets (if any).

    (b) If a Board-regulated institution qualifies to use operational risk mitigants and has qualifying operational risk mitigants, the Board-regulated institution's dollar risk-based capital requirement for operational risk is the greater of:

    (1) The Board-regulated institution's operational risk exposure adjusted for qualifying operational risk mitigants minus eligible operational risk offsets (if any); or

    (2) 0.8 multiplied by the difference between:

    (i) The Board-regulated institution's operational risk exposure; and

    (ii) Eligible operational risk offsets (if any).

    (c) The Board-regulated institution's risk-weighted asset amount for operational risk equals the Board-regulated institution's dollar risk-based capital requirement for operational risk determined under sections 162(a) or (b) multiplied by 12.5.