Regulatory Alerts2014-03-31 | 02/17/600/0029/001Implementation of the Standardised Approach for Computing Risk-Weighted Amounts for Operational Risk under Basel II
The Bank Supervision Department has issued revised guidelines and reporting formats to implement the Standardised Approach for computing operational risk capital charges under Basel II. Effective July 1, 2014, these updates replace Guideline No. 6.8 of Part V and the existing reporting schedule for all licensed commercial and specialised banks, mandating standardized risk-weighted amount calculations. Financial institutions must adopt the new schedules to ensure consistent capital adequacy reporting and align domestic regulatory requirements with international Basel II standards.
@ goor @co OcoapO AUoGD qA!r€6 oqefioo@dqO euridl GLo$unrioror$ $eoom&aenLb Bank Supervision Department 3\ March2014 Ref No. : 02/ 17 I 600 10029 I 001 To: CEOs of all Licensed Commercial Banks and Licensed Specialised Banks Dear Sir/Madam IMPLEMENTATION OF THE STANDARDISED APPROACH ON COMPUTATION OF RISK-WEIGHTED AMOUNT FOR OPERATIONAL RISK UNDER BASEL II CAPITAL ADEQUACY FRAMEWORK We refer to our previous correspondence and discussions on the above and enclose the revised Guidelines and reporting format on computation of operational risk capital charges for licensed commercial banks (LCBs) and licensed specialised banks (LSBs). Accordingly, with effect from 0l .07.2014: a. Guideline No. 6.8 of Part V on the computation of Risk-Weighted Amount for Operational Risk referred to in Schedule I of the Banking Act Directions Nos. 9 and 10 of 2007 issued to LCBs and LSBs, respectively, are replaced with the revised Guidelines in Schedule I; and b. Existing reporting format of the computation of Risk-Weighted Amount for Operational Risk as referred to in Schedule II of the Banking Act Directions Nos. 9 and l0 of 2007 issued to LCBs and LSBs, respectively, are replaced with the new formats in Schedule II. Yours faithfully (Mrs.)f".-VflYPFernando 8- Director of Bank Supervision Encl. o OeD g.rg, qco 3o, daraed OrOcl, t'!. @G,,59O, elo€O oI, 6 elclolo 6egri: onrg, @o. :o emrpflupfl onogog GtsrqgLbq 1 lerel 6,No,30,JanadhlpathlMawatha,Colombo pi. Ou. OED. 590, Oengrbq 01, Oa)rEd)6 P,0. 80x.590, Colombo 01, Sd Lanka.