(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.
